Homeowners expect mortgage relief on its way
Australian homeowners are expecting more mortgage relief this year, tipping the Reserve Bank will cut the official cash rate before the year is out.
A survey conducted by Loan Market revealed 64 per cent of home loan customers anticipated another rate cut this year.
The current cash rate stands at 3.5 per cent after a quarter of a percentage point cut in June, following on from 50 point slash in May.
The poll found 46 per cent of residential property owners believed interest rates would be cut by 25 basis points and 15 per cent anticipated the rate to drop 50 points.
Three per cent of the 865 poll respondents expected a cut of more than one percentage point, and 36 per cent tipped the rate would be held.
Loan Market corporate spokesman Paul Smith said the RBA was keeping the rate steady amid uncertainty in global markets, however it was evident consumers were eager to see more mortgage relief.
"Although many economic forecasters are tipping the RBA to stay on the sidelines, the consumer sentiment is clearly in favour of further rate relief," Mr Smith explained.
"Consumers would clearly like another helping hand from the RBA and rate relief could provide a welcome boost to their confidence in the lead up to Christmas."