Reserve Bank Leaves Interest Rates On Hold
The Reserve Bank of Australia has elected to keep interest rates on hold after cuts in previous months, which should aid the recovery of the real estate sector.
Rates will remain at 3.5 per cent which comes off the back of a shrinking European economy, modest growth in the US and far less than expected growth out of China.
And given there doesn't seem to be any sign of improvement in the European markets, those interest rates look to remain steady for the time being.
Housing Industry Association's chief economist Dr Harley Dale says the RBA should go further to stimulate the economy.
"In today’s (September 4) statement the RBA has left the door open for further interest rate cuts, but the degree of conjecture and uncertainty around whether such action is taken will continue largely unabated following today’s announcement," he said.
This willingness to negotiate home loans can come in handy as property markets look to improve in the warmer months.
By negotiating interest rates and getting a better interest on your mortgage, the differences over a lifetime can mean savings tens of thousands of dollars.
The HIA statement comes as RP Data released statistics showing that housing prices increased in Sydney by 0.1 per cent last month, meaning that housing affordability isn't rapidly declining.