It’s no surprise that the Reserve Bank of Australia (RBA) kept interest rates on hold at its meeting yesterday following a drop last month to 2.5% - the lowest official interest rate in over 50 years!
With the majority of lenders cutting their variable interest rates in response to last month’s reduction, we’ve seen a knock on effect that has brought about some positive changes in the housing market.
Dwelling values are recovering with home values at half a per cent higher in August and 7% higher since the housing market started its recovery in May last year. This has been accompanied by a substantial rise in buyer numbers as well, which has provided the RBA with some comfort in keeping interest rates on hold.
Although inflation and employment figures continue to suggest another rate cut may be needed this year, the RBA is holding strong this month and will also be waiting to see what a change in government may bring to business figures and consumer confidence.