If you are looking for a home loan in the Rockingham area, there may never be a better time than this to call a mortgage broker at Smartline Rockingham and get the ball rolling.
The newest Monetary Policy Decision from Reserve Bank of Australia (RBA) Governor Glenn Stevens was released on 1 September 2015. As expected, the RBA decided to keep the cash interest at its record low rate of 2.0%. As always, a number of factors were taken into consideration to make the decision.
Mr Stevens cited a “moderate expansion” of both the global and Australian economies, with China’s economy “softening” and the US economy showing “stronger growth.” He also mentioned “falling commodity prices” in Australia due to increased supply as an indication that Australia’s global “terms of trade” are “falling.”
Mr Stevens said that the Australian economy is continuing a pattern of “moderate expansion,” but that the growth has been “somewhat below long term averages” for an extended period of time. Mr Stevens sees more employment growth, a continuation of the current economic pattern and an overall effect of the economy “operating with a degree of spare capacity” for a sustained length of time.
However, Mr Stevens did say the “Reserve is expected to start increasing its policy rate over the period ahead.”
What This Means to You
Analysing Mr Stevens’ statement, it is apparent that the record low interest rates are not going to be around much longer. In the entire Perth housing market, we are in a “sweet spot” that we may not see again. The interest rate is at a record low. In addition, house prices for the Perth market actually decreased 1.7% from 31 August 2014 to 31 August 2015.
The bottom line: you will never have an opportunity to buy a home at these prices with record low interest rates again.
To learn more or for an individual consult, call Smartline Rockingham today: (08) 9527 1800.