The Reserve Bank of Australia (RBA) decided to keep the official cash rate unchanged at 0.10 percent at its meeting today. To view the official RBA statement, please visit the Reserve Bank’s website.
RBA governor Philip Lowe said the rollout of vaccines is supporting the recovery of the global economy, although the recovery is uneven. In Australia, the economic recovery is stronger than had been expected. “Housing markets have strengthened further, with prices rising in most markets. Housing credit growth to owner-occupiers has picked up, with strong demand from first-home buyers,” Lowe said.
The latest REA Insights Weekly Buyer Demand Report shows that the buyer demand remained high last week, falling slightly by 0.6 per cent. Demand has been at high levels throughout the latter half of 2020 and increased further in 2021, which suggests the continuous momentum in the housing market. Paul Ryan, REA Group Economist said, the demand is likely to remain at elevated levels over the coming weeks and months as interest in the property market remains high. “However, more stock coming onto the market will likely lead to more buyers transacting on new homes, which in turn could weigh on the overall level of demand,” he added.
Some lenders have passed on bigger interest rate cuts than others in the recent months, so if you’ve had your mortgage for some time, now is a good time to review your current loan to ensure it still works for you. Contact Fornaro today!