The Reserve Bank of Australia left interest rates unchanged at 1.5% at its October monetary policy meeting, an outcome that was widely expected by markets and economists alike.
In making this call, the RBA has resisted temptation to further lower rates, opting instead to wait until the September quarter CPI data is released to allow it more time to measure the impact of the August rate cut.
From a housing market perspective, the commentary theme from the RBA has been one of slowing conditions since higher housing supply levels, particularly the supply of apartments scheduled to come on stream in the eastern capital cities and lower levels of affordability are likely to naturally dampen some of the upwards pressure in housing markets.
Investor activity in residential property has once again been consistently rising since June including smaller capital city housing markets like Canberra despite “growth in rents being the slowest for some decades” which is interesting particularly as rents are an influential component of the quarterly CPI release.
Even though the official cash rate has remained unchanged, lenders can move their rates independently, so you may see a change to your rate. Of course, one of the many benefits of having us as your mortgage broker onside is that we are very happy to speak to you at any time to ensure you still have the right financial solution for your current circumstances.
While the official cash rate remains unchanged, banks and non-bank lenders continue to move their rates out of cycle and there may be a better product for your circumstances.
If you want to discuss your home loan rate, fees or structure, please feel free to contact us today!