2017 kicks off with more rate stability but will it last?
The Reserve Bank of Australia (RBA) at its February meeting held the official cash rate at 1.5% in a move that was widely predicted by economic experts across the country.
It marks the sixth consecutive month that the cash rate has remained unaltered and Mortgage Choice chief executive officer John Flavell said it was “safe and unsurprising”.
“Amidst a lot of domestic and global uncertainty, it wasn’t surprising to see the Reserve Bank of Australia take the safe option and leave the official cash rate on hold,” he said.
Future rate adjustments cannot be ruled out. Nobody knows what the future will bring. Depending on what happens both here and abroad, the Reserve Bank could really decide to do anything with the cash rate.
While the future is uncertain, one thing is clear: rates are currently sitting at near-historical lows, which is great news for existing property owners and potential property buyers.
Most commentators are expecting a rise in 2017.
The RBA appears slightly more bullish on the world economy and a little more sanguine regarding the risks to the domestic economy.
We have already seen movement outside of any Reserve Bank official rate movement, predominantly in the fixed home loan segment. The longer term fixed rates have already moved upwards.
Still, rates are historically low and if you are sure of what you are doing with your property and loan then a fixed rate or split loan (part fixed/part variable) should be a definite consideration.
If you would like to look at your numbers and rates, please contact me to do a health check on your existing loans.
Donna-Lee Parkes
0418 903 954