RBA leaves rates at 3.75%
By · CommentsJust received confirmation & in a surprise move, the Reserve Bank of Australia announced it is leaving the cash rate unchanged at 3.75% as it waits to see the effects of earlier rate rises.
In a statement released this afternoon, Governor Glenn Stevens the continued legacy of the financial crisis affected its decision.
Despite improvements in the global financial markets, Stevens said: “Credit conditions nonetheless remain difficult in the major countries as banks continue to face loan losses associated with the period of economic weakness. Concerns regarding some sovereigns have increased,” he said.
Stevens noted that economic conditions in Australia have been stronger than expected, adding that the country has experienced lower than expected unemployment, modest inflation and expanding credit for housing.
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RBA hints rate rise around corner
By · CommentsJust received this email from brokernews.com – I thought rates would increase again, which to me means the market is now moving and we should all see some equity growth over the next 12 months.
The Reserve Bank of Australia has indicated it could push the cash rate higher next month in an effort to control inflation.
RBA Governor Glenn Stevens suggested yesterday that the central bank should not be timid in altering its emergency monetary policy as circumstances change.
The central bank lifted the official cash rate from 3% to 3.25% in early October for the first time in 19 months.
Signs that Australia’s economy has started to make a recovery are evident in country’s growing optimism.
Yesterday, the Westpac-Melbourne Institute Index of Consumer Sentiment a 1.7% increase in consumer confidence in October, despite the rate rise. As well, forecasts of growing unemployment have yet to materialise.
According to Stevens, four factors would affect the central bank’s decision on future hike: inflation, international developments, the spread between the cash rate and banks rates; and the local economy.
The RBA will meet again 3 November.
RBA increases cash rate 25bps
By · CommentsHave you heard the latest…????
Well, the RBA have increased the official cash rate today from 3.00% to 3.25%. I am not totally surprised at this increase, and I suspect another rate increase is more likely to occur next month. With the RBA not meeting in January either, the next rate hike might be 50 BPS instead of 25 BPS. Times like this I wish I had a crystal ball!
Seeing as though the cash rate has increased today, it will only be a matter of time before the banks increase their interest rates – my guess is that most of the banks will pass the full increase onto us consumers. This means the rate increase will increase monthly repayments by $83 per month ( based upon a $400,000 mortgage).
Melissa Mann
Sunshine Coast
95% NON genuine savings is still available!
By · CommentsI have just been advised that there is a still a lender out there who will do 95% (INC LMI) against a refinance or purchase – attracting a 5.8% interest rate, this product is very competitive! Perfect for first home buyers looking at getting into the market before the the First Home Owners boost runs out on Sept 30th 2009.
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Westpac to increase fixed rates…again
By · CommentsJust received notification that Westpac will be increasing fixed rates from Tuesday 15th September. New rates will be:
1 year 6.19%
2 year 6.99%
3 year 7.19%
4 year 7.84%
5 year 7.85%
Westpac’s current fixed rates
By · Comments1 year 5.59%pa
2 Year 6.39%pa
3 year 6.99%pa
4 year 7.64%pa
5 year 7.64%pa
7 year 8.24%pa
10 year 8.24%pa
Home prices on the rise..
By · CommentsJust read this interesting article on the API website. I have spoken with alot of my clients recently about where we think the market is heading, this article seems to answer that question!
Home prices on the rise
http://www.apimagazine.com.au/api-online/news/2009/08/home-prices-on-the-rise
Posted on Monday, August 31 2009 at 8:30 PM
Australian home prices have increased by nearly six per cent over the first seven months of this year.
A 0.9 per cent rise in values in July brought the total capital growth for the year to 5.9 per cent, according to the RP Data-Rismark Home Value Index.
As at the end of July Australian home values were sitting at 1.8 per cent more than their February 2008 peak.
RP Data national research director Tim Lawless says Australia’s residential property market has outperformed the other major western markets and provided better returns than shares, commercial property, superannuation, hedge funds and private equities.
“Australia’s residential market has been further supported by low mortgage default rates, at just 0.6 per cent, compared with five per cent in the US and three per cent in the UK.”
“Every mainland capital city has experienced solid growth during the first seven months of the year.”
Darwin was the best performing capital city, with homes increasing by 10.8 per cent to the end of July and Adelaide saw the lowest growth with values increasing by just 1.9 per cent.
Melbourne saw an 8.5 per cent increase in values, prices in Sydney climbed 6.6 per cent, Canberra prices increased by 5.4 per cent, Brisbane values grew by 3.8 per cent and Perth prices grew by 2.5 per cent.
Darwin also had the best returns for investors, recording a gross rental yield of 6.4 per cent for houses and 6.1 per cent for units.
Rismark International managing director Christopher Joye believes the housing market will continue to see modest gains in values over the next 12 months.
“Home values are now increasing steadily in all areas including Australia’s most expensive suburbs,” he says.
“This has eviscerated the popular myth that the recovery was being driven exclusively by first timers at the cheaper end of the market.”
“While first-time buyers did initially furnish the early momentum, upgraders and investors have now taken over the baton as we anticipated.”
“This is reflected in the superior performance of houses compared with units since the first quarter of 2009.
Would be interesting to hear what you think..?
Cash rate at 49-year low
By · CommentsAccording to API the market is now sitting at a 49 year low.
This article states:
Stevens stated how the downside risks to the global outlook have diminished but not disappeared, but Australia’s economic conditions in both consumer spending and exports have been stronger than expected.
“Measures of confidence have recovered a good deal of ground. This suggests that the risk of a severe contraction in the Australian economy has abated,” said Stevens.
This is a great time to buy!
Please contact me if I can help you more.
