Home loan customers enjoying record-low interest rates can afford to sit back, relax and enjoy the party. The economic turmoil that's engulfed the planet during this coronavirus pandemic looks likely to keep rates low for a long time.
Amidst rising speculation that interest rates are set to fall further, the Reserve Bank of Australia (RBA) chose to hold firm this month, keeping the cash rate at the record low setting of 0.25%. The focus has been on supporting housing market activity and insulating home values.
Nationally, housing values are down 2.1% since peaking in April. However, the most recent trend is showing the market is stabilising, and outside of Sydney and Melbourne, housing values have nudged higher.
There is a growing expectation that the RBA will announce another interest rate cut on Melbourne Cup Day (3rd November). Economists have predicted it will go to 0.1%.
With this in mind, prospective home buyers are likely to feel more confident in making high commitment purchasing decisions, such as property.
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