Mood change on rates
For the majority of last year, the debate around interest rates had been focused on when the Reserve Bank of Australia would lift the official cash rate from its record low level.
Indeed, the 2.5% rate for 2014 represented the lowest average monthly cash rate since 1959.
However, softening economic indicators have changed the discussion on the issue.
Many of Australia’s leading economic minds are forecasting the next change in the cash rate will be downward. It will be good news for mortgage holders, and may be a further spur for renters to make the leap to home ownership.
Some major banks, including Westpac and NAB, are suggesting the next official cash rate movement will be down, while the Commonwealth Bank and ANZ believe any movement upward may be delayed until the end of the year, or even 2016.
For home owners and purchasers, the forecasts have provided an outlook of affordability for the majority of the year.
If purchasing or refinancing in 2015 is part of your real estate strategy, contact LJ Hooker Home Loans today by visiting ljhookerhomeloans.com.au