Mortgage holders can breathe easy for another month after the Reserve Bank today decided not to increase interest rates.
In a sign that the Reserve Bank thinks the economy is bubbling along nicely, it opted to keep rates on hold at 4.5 per cent. “Inflation seems to be in check for now and the housing market has been stabilising,” says Domain.com.au blogger and property writer Carolyn Boyd.
Each 0.25 per cent interest rate rise adds another $50 to the monthly cost of an average mortgage. Australian mortgage holders are already paying about $300 more per month in repayments than they were a year ago.
Boyd says there is a chance of an interest rate rise before the end of the year and mortgage holders would do well to prepare for that by paying a little extra off their loans each week now.
Mortgage holders on variable interest rates are being charged about 7.4 per cent by their lenders.
With the drawn out Federal election, the property market has remained steady in recent weeks and a slower than usual start to the Spring selling season is predicted.