News
The RBA held the cash rate steady in February – 4.35%. There are expectations to reduce rates in 2024 during the next meeting in March.
Gareth Aird, the CBA head of Australian economics, noted that “the RBA is now on the home straight” in its fight against inflation.
This is good news for Australian Buyers and Investors.
April 21, 2024
Key insights on the 2024-2025 Budget by Dr Shane Oliver – Head of Strategy and Chief Economist at AMP:
- The budget this year is expected to show a surplus of $9.3bn thanks to a continuing revenue windfall, but slip back into bigger deficits from 2024-25.
- Significant extra spending risks adding to inflation
- The budget is aimed at trying to lower inflation in the near term but supporting Government priorities including formally launching a “Future Made in Australia” (FMIA) over the medium term
- A mix of subsidies, tax breaks, cheap loans, relaxed foreign investment rules & less red tape to boost investment in government chosen industries as part of the $22.7bn “FMIA” policy
- AMP believes that property prices will increase. The home price outlook is dominated by supply shortages & high rates. There is modest home price growth this year.
What is Leading to Current Prices?
July 12, 2024
Winter is here and it is a good time to snap up a bargain.
There is commonly less competition within the market and those prepared win. We can assist you with Deposit Bonds if you don’t have your cash ready.
The property market continues to perform, with CoreLogic figures revealing prices in all capital cities. Sydney is the place to be, while many utilise strong capital growth and yield interstate.
Interest Rate News
The Reserve Bank of Australia decided to keep the cash rate at 4.35%. While inflation has fallen since its peak in 2022, they are still high and above the target bracket of 2-3%. Given this, some homeowners have put hopes for a rate cut on hold for the moment.
The RBA has noted that rates are uncertain, however will be confirmed on August the 6th.
July 15, 2024
Home Loan Brief
National Housing values rose 0.8% in May, for the 16th consecutive month of growth since October.
CoreLogic research Director, Tim Lawless, noted extremely low levels of available supply across the strongest markets gave an insight into the growth.
“Fresh listings are being absorbed by rapid demand, keeping stock levels low and upward pressure on prices”.
How high have they risen?
Assuming $500,000 mortgage on a 25 year term, commencing in April 2022, and you are on a variable loan that is passed on via your bank, your mortgage would be $1,210.00 more expensive (than April 2024).
Homeowners are stretched, with effectively buying a new iPhone every month.
Strategies that help
- Call us and your bank
- Make extra repayments; to chip away at that principal
- Paying into an offset account; to reduce your interest
- Refinancing to a lower rate lender if it suits your budget
Where to: Next Indications
The big four banks economic teams have all given insight into rate reductions, albeit in 2025. With an average home loan at 6.38%, what will they look like in the coming months (estimate).
Big Four (4) banks forecast and comparison:
ANZ has been the first of the big banks to rule out a rate cut, until 2025.
Home loan news: When will rates finally come down?
With the next RBA meeting in August, the number one enemy is inflation. While inflation remains high, so will home loans.