Home loan rates may have reached the bottom of the current cycle where they are at historic lows.
While the Australian economy continues to grow slowly, there remains global uncertainty, together with signs of an economic recovery in parts of Europe and optimism in the US, the world’s largest economy.
The Australian residential market continues to be buoyant, particularly in the Eastern Seaboard’s capital cities. Lenders are now offering competitive mortgage rates, however the climate for investors is becoming more difficult as a result of regulatory controls.
While there are signs of upward pressure on rates in the US, it is unlikely that we will see the Reserve Bank of Australia lifting official interest rates in the foreseeable future.