Are further interest rate cuts expected this year?

While the spring housing market has always been a defining market season, this year property experts are expecting further momentum.

The Reserve Bank cut interest rates in August for the third time this year providing fantastic news for current mortgage holders and first home buyers.

Rate cuts have a significant impact on the housing market because interest rates affect both the cost to borrow and how much a buyer can borrow.

Lower interest rates generally mean lower mortgage repayments, enabling buyers to borrow more for the same monthly outlay.

The other great effect of lower interest rates is that consumer confidence is usually higher when interest rates are falling as compared to when they are rising.

Although, with the latest unexpected inflation rate news coming in this month, this has suggested that the Reserve Bank could be done with lowering borrowing costs at this stage.

These monthly inflation figures will cause the RBA to be extremely cautious to cut rates further which is not what mortgage holders want to hear.

If you're looking to buy a home or property, you'll need a conveyancer.
Walsh Conveyancing would be happy to guide you through the conveyancing process.

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