With plenty of market volatility surrounding Britain’s decision to exit the EU last month and the uncertainty surrounding our inconclusive Federal Election, the Reserve Bank of Australia (RBA) met today for its July meeting and decided to keep the official cash rate on hold at 1.75 per cent.
Market analysts widely predicted today’s decision, anticipating that our next rate cut is unlikely to arrive before August. Despite an Aussie dollar that’s strengthening against other currencies, and low inflation figures, the RBA is waiting to gauge the effect of their last rate cut in May this year before making further changes to the official cash rate.
Following the RBA’s decision to cut rates in May, lenders have been adjusting interest rates for residential, property investment and commercial borrowing purposes. Interest rates on home loans are particularly competitive and another rate cut in August could see more good news on the horizon for home buyers for the remainder of the year.
The winter property market is performing well, with plenty of housing stock available for those looking to make a purchase. If you’re in the market to buy a home, talk to us now about getting pre-approval on your home loan in plenty of time before the market heats up even further in spring.
If you’d like to check you’re still getting the most competitive rate on your existing home loan, or are considering switching to a fixed rate product, now is also a great time to talk with us. We’ll be happy to take a look at your current home loan product and see if we can help you get a better deal, so please give us a call today.