With the property markets picking up during the busy spring selling season, the Reserve Bank of Australia has decided to keep the official cash rate on hold at 2.5 per cent during its monthly meeting today. Most analysts were expecting the cash rate to remain on hold after the RBA cited a ‘period of stability on interest rates’ at its last few meetings.
According to analysts, a rise in interest rates will probably occur later this year or early in 2015, now the RBA’s policies have finally seen the Australian dollar fall against the US dollar and other currencies. However, it is likely that any adjustments in interest rates at that time will be incremental.
The spring property market is performing well, with the number of properties on the market increasing in all capital cities and auction clearance rates remaining high. With interest rates looking set to stay low for the foreseeable future, the finance market is at its most competitive for 60 years with many lenders offering extremely low rates on fixed rate mortgages and investment packages.
Now is a great time to take stock of your personal financial situation and get yourself ready for the spring property market. If you would like to talk about your plans and get your financing in place, then just give us a call. Whether you’re looking to buy your dream home, or you’re an investor looking to take advantage of your next opportunity, we’re here to help!