Two years and counting… cash rate holds steady
Last month we saw the official cash rate celebrate its second birthday at 1.5%, and this month we’re seeing more of the same from the Reserve Bank of Australia.
Yes, the cash rate needle is once again stuck firmly on 1.5% – and it’s great news for Aussie home owners. In fact, the RBA hasn’t raised interest rates in nearly eight years!
Our record-breaking run of stable interest rates is especially exciting for first home buyers and upgraders, who can head into the busy spring property market knowing home loan rates are still at record lows.
Why no change?
The Reserve Bank is comfortable that “the big three” – our economy, unemployment and inflation rate, are all pretty much where they should be for steady economic growth.
Property values are still cooling in a number of markets especially Sydney and Melbourne, and that means the need to raise interest rates to prevent runaway price growth is no longer a major target on the Reserve Bank’s radar.
But some lenders have hiked their rates
The official cash rate may be stable here in Australia, but they are rising overseas. And that’s pushing up lenders’ funding costs.
Already we’ve seen some banks raise their variable home loan rates. But in a competitive market some other lenders have lowered their rates. Confusing, right?
That’s why now is the time to chat to your Aussie Broker for a free review of your home loan. It’s a simple way to know if your home loan is still competitive and appropriate for your needs – or if you could get a better deal elsewhere and potentially pocket valuable savings.