Cash Rate On Hold Despite Accelerated Property Price Growth

Written by Rates Direct in Finance on October 1, 2013

Real estate- interest rate announcement by the RBA- home loansThe Reserve Bank (RBA) faced one of its more difficult Cash Rate decisions in recent months where it decided to keep the rate unchanged at 2.5%.

Several economists have been claiming that any further rate cuts may lead to “bubble-like” growth in property prices, and this has been taken into account – with current price acceleration unmatched since April 2010.

Unemployment is also creeping upwards with the jobless rate recorded at 5.8% in August. If this trend continues above 6.00% and inflation remains within the 2.00% – 3.00% target zone over the next six to 12 months – one or perhaps several rate cuts are likely.

Thus in the coming weeks – we will keep you informed ofunemployment, economic growth, currency and property prices in line with next month’s announcement.

We have access to a full range of mortgages and discounted interest rate offers starting from 4.69% p.a. 3 Year Fixed Rate (comparison rate 5.22% p.a.) and 4.74% Discounted Variable Rate (comparison rate 4.77% p.a.) – when most people are paying well above 5.00%.

Rates Direct is a FREE service with zero obligation. So whether you’re a first home buyer, re-financing your current home loan or looking for an investment property, we have the right home loan solution for you. Visit the home loan centre here to find out more

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