Many predicted that interest rates would be on the move in October, although some had held their prediction back to November, and sure enough… interest rates rose today by 0.25% from 3% to 3.25%. In a statement issued today, Reserve Bank Governor Glenn Stevens cited lower unemployment and solid housing credit growth as among the reasons for the increase. He said the “risk of serious economic contraction in Australia [had] now passed”. (more…)
Fixed rates are generally a good indicator of which way the banks are thinking interest rates will move in the future, since banks have to set their rates to make some sort of profit during the course of a fixed rate period. Interestingly, we’re now seeing majority of banks hiking fixed rates up, under the radar. (more…)
Yesterday, the Reserve Bank of Australia (RBA) cut interest rates by another .25%, as expected by many. The April reduction brings the cash rate to the lowest recorded rate since it was established in Australia. Of course, this is great news to borrowers and people who are still looking to purchase that first elusive home… but before you start dancing a jig, there’s some bad news that comes with it. (more…)
Two weeks out from the next Reserve Bank meeting, all the talk is regarding whether or not interest rates will be cut again or not. This month’s meeting saw the Board decide to take a breather on rate cuts and just wait and see what impact their decisions over the last 6 months have had. Common sense, I call it. (more…)
The latest Unemployment figures were released yesterday, and they confirm a lot of fears. A rise in unemployment was recorded in the last month to the tune of almost 50,000 people. A pretty large increase in a single month, which takes the unemployment rate to 5.2% (seasonally adjusted). That’s 1.3% higher than this time last year, prompting calls for another interest rate slashing. (more…)
As most of you would know, the RBA decided to keep rates on hold this month. Finally, some common sense amidst the chaos. The reason the RBA kept rates on hold was a simple one. In fact, it’s what I’ve been crying out for since they started forcing rates up. (more…)
So, yesterday the RBA were kind enough to grant Australians a 1% interest rate cut, which has been passed on in full by majority of the banks, with most making it effective by the end of the week.
The news is, on the average mortgage (which has been identified as $254,000) a 1% rate cut will save you (more…)
In the last couple of days, there has been a significant amount of economic data and commentary signalling big rate cuts on the agenda for the early part of 2009. The banks have been systematically dropping their fixed rates, which is always a big indicator that the RBA are preparing to cut interest rates. On top of this, (more…)
Today, CBA announced reductions in their fixed rates effective Monday 19 January, of up to 0.5%. Only a few weeks out from the first Reserve Bank Board meeting of 2009, this signals the first rate cut for 2009, which will most likely be 50 - 75 basis points. Many are demanding a cut of 75 bps, and they may just get it. With unemployment rates forecast to skyrocket and the doomsayers out in force, it seems we’re in for a rocky road in 2009.
Once again, if you can comfortably keep your repayments up at the previously high levels of mid-2008, you’ll reap huge rewards in this time of dropping interest rates. It will cut years off your mortgage and potentially save hundreds of thousands of dollars in interest.
If you’d like to discuss this further, please contact your Duckling Finance Consultant today!
Yes! The RBA has decided for the fourth consecutive month to cut interest rates, this time by another massive cut of 100 basis points (1%). For First Home Owners this is sensational news, making property ownership much more affordable than it has been in recent times. For investors it is also welcome news and should see a flood of investors moving back into property. For those on fixed rates, however, it’s yet another kick in the pants! (more…)
