The RBA has today announced that interest rates will remain on hold for another month, ensuring rates stay at 2.5%
In a further sign that property prices will continue and potentially increase even more, the hold on interest rates will be an attractive sign for both first home buyers and investors. It seems that for the RBA to increase interest rates, they will need to ensure that unemployment is well under control, and the debt to equity ratio is balanced. At the moment, there are plenty of mortgages structured with the bank funding 70 + % of the loan. Until repayments become an issue, it will seem unlikely that there will be a rate cut.
What this does mean is we can expect consumers to keep buying a house at the top of their priority list, and an ever increasing demand from the market to do so. Auction rates have been up over the last few weeks, and with Spring on the way, expect a bumper season!