Even with the rapid surge in housing prices in the last few months, the RBA held the cash rates at 0.10% again.
They have repeatedly insisted that the rates won’t be raised until 2024, and while it holds now, experts think it might change much sooner.
“Today’s decision to hold the cash rate was an expected one, despite concerns around how overheated the property market may become,” said Alan Hemmings, CEO of Home Loan Experts.
“While the RBA will be watching affordability closely over the next few months and we may see some regulatory measures in the future, it would be premature to increase rates at this stage.”
With the government trying to bring the economy back to pre-pandemic levels, the RBA doesn’t want the property prices to cool down yet. Experts think that they may change their position when we’ve got through this period of rolling out vaccines.
The Australian economy is recovering reasonably well from COVID-19, and with property prices rising steadily and job figures looking good, we’ve seen some banks increase their rates. It is possible the RBA will follow.
For now, though, the RBA has indicated that it will resist raising the rates, which is good news to the first home buyers.v
What about the increasing prices?
The house prices in some parts of the country have been climbing up at one of the highest rates in recent years.
Sydney’s median auction house price saw a rise of more than $100,000 in March alone, with houses being auctioned at a median price of $1.755 million.
In a red-hot market like this, the only armour that can help you keep your cool is accurate information.
We understand that it is a stressful time seeing the house prices soaring sky high. The time is now to be informed, understand how much you can borrow and act quick.
Even if you have a low deposit, buying now before the prices and rates go up again may be the best way to go.
Our mortgage brokers are experts at finding options available for your situation. Please call us at 1300 889 743 or fill in our free online assessment form, and one of our brokers will get back to you right away.