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Cash Rate On Hold Despite Accelerated Property Price Growth



Real estate- interest rate announcement by the RBA- home loansThe Reserve Bank (RBA) faced one of its more difficult Cash Rate decisions in recent months where it decided to keep the rate unchanged at 2.5%.

Several economists have been claiming that any further rate cuts may lead to “bubble-like” growth in property prices, and this has been taken into account – with current price acceleration unmatched since April 2010.

Unemployment is also creeping upwards with the jobless rate recorded at 5.8% in August. If this trend continues above 6.00% and inflation remains within the 2.00% – 3.00% target zone over the next six to 12 months – one or perhaps several rate cuts are likely.

Thus in the coming weeks – we will keep you informed ofunemployment, economic growth, currency and property prices in line with next month’s announcement.

We have access to a full range of mortgages and discounted interest rate offers starting from 4.69% p.a. 3 Year Fixed Rate (comparison rate 5.22% p.a.) and 4.74% Discounted Variable Rate (comparison rate 4.77% p.a.) – when most people are paying well above 5.00%.

Rates Direct is a FREE service with zero obligation. So whether you’re a first home buyer, re-financing your current home loan or looking for an investment property, we have the right home loan solution for you. Visit the home loan centre here to find out more

Get ahead of the competition by staying in touch with your real estate market – join realestateview.com.au, to set up your ViewAlerts for new properties (located on the right-hand side of our homepage).