Ocean Home Loans

Date: 4th October 2016
Another month with no movement in Interest Rates

The Reserve Bank of Australia (RBA) has met today to decide its October monetary policy decision in what is governor Phillip Lowe’s first-rate day. Following the decision to cut interest rates to a record low-level of 1.5% in August, members have again decided to keep rates on hold, affirming the RBA’s message of stability, and predictability, not radical change.

The decision on rates came as no surprise, with a survey of 10 economists by The Wall Street Journal showing they all expected there to be no change, including Shane Oliver, head of economics at AMP Capital Markets.

“Not enough has changed in Australia since the last rate cut in August to justify any change,” he said.

Whilst there has been no dramatic change, the Australian economy continues to perform well, with unemployment rates falling, while GDP growth remains above 3% on a year on year basis, meaning the nation is closing in on a world record for growth without a recession.

Interest Rates Hold is Good News

A hold in interest rates continues to be good news for mortgage owners, who are enjoying all time low rates and a housing market that continues to punch out impressive growth numbers.

The Canberra market was the big winner in September with house prices rising 2.4 per cent, beating Melbourne at 2.3 per cent and Sydney at 0.8 per cent.

Canberra has also posted the same kind of strong year-on-year house price growth as Melbourne at 9 per cent, while the Sydney market racked up an annual rise of 10.2 per cent and enjoyed a rise in auction clearance rates to 84% over the grand final weekend.

Elsewhere, monthly dwelling values rose more than 2 per cent in Adelaide, while dwelling values across the five capital cities were up just under 1 per cent for the month, following a 1.1 per cent rise in August.

Ultimately, sustained housing growth coupled with all time low interest rates continues the spate of good news for investors and home owners alike, affirming that housing is still a safe and solid investment.

Now that it is spring, when the real estate market really hots up, you may also be looking to take advantage of favourable economic conditions. As usual, we are here to help with any questions.

Latest News
Contact Information
Phone:
0755931420
Fax:

0755931460

Address:

Port Jackson Boulevard
Robina, 4226

Website:

www.oceanhomeloans.com.au

Contact Form