A sigh of borrowers relief is happening all over the nation as the Reserve Bank of Australia announced a rate freeze for April 2023. With the cash rate remaining at 3.60%, homeowners are given a slight reprieve after the last 10 consecutive rate rises since May 2022.
The RBA advised that their decision to freeze the cash rate was backed by one core factor. Australian households are yet to experience the effects of the previous 10 rate rises, despite already feeling the sting of general living cost increases.The Reserve Bank of Australia has advised that they will take the required measures in order to ensure that inflation returns to their target of between 2-3%. These figures may not be seen till mid 2025 at the earliest, according to Philip Lowe; Governor of the RBA.
Despite day to day struggles for the average consumer given cost of living increases in almost every aspect; several positive observations have been made during the long term rate hike between 2022 and 2023. The unemployment rate is at a near 50 year low, wages continue to increase, and house prices continue to decrease. For those who have had the ability to prepare for the rate hike, now has never been a better time to invest in the property market.
Discussing rates and products with an experienced mortgage broker will stand you in good stead for any economical minefields to come. It is imperative to stay informed on things such as the cash rate, cashback offers available, and financial current affairs to ensure no pennies are being pinched from your back pocket.
In an ever fluctuating market, first homeowners are rejoicing at lower property prices. Meanwhile, current homeowners anticipate their fixed rate maturing, and the inevitable spike as they move on to a variable rate.
Refinancing takes the cake when it comes to home lending activity, with competitors rivalling to win business during this turbulent time.
Basking in the short term reprieve of no rate increase leaves little peace of mind; 3.60% is not predicted to remain a familiar face for long.
Banks, financiers and well known figures in the financial industry have predictions that May is set for a cash rate increase. Reputable news channels often report on this in their finance sector. This consolidates the urgency to give your own finances a health check to make sure liabilities are in tip top shape.
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