RBA rate hold will not cool spring heat

by Mackenzie McCarty05 Sep 2012

The decision by the Reserve Bank to keep the cash rate on hold is unlikely to put the brakes on spring market exuberance, argues one brokerage.

Mortgage Choice responded to yesterday's cash rate decision by saying there were plenty of positives in the property and home loan markets, and the market was still likely to 'heat up'.

“With spring here, and the weather well and truly warming up, it is likely that the property market will start to heat up, too," said spokesperson Belinda Williamson.

"In general, we find that good weather helps drive positive property market sentiment, and we are certainly seeing signs of this already."

For those selling, Mortgage Choice believes positive sentiment translates to positive sales, while for those buying, they won’t miss out due to there being more properties to choose from.

“Buyers and borrowers alike will also benefit from knowing lenders’ interest rates remain at historically low levels, and some have recently been adjusting their interest rates in favour of borrowers," Williamson said.

"It would appear the home loan market is shaping up for Spring the way borrowers would like it to.”

For those upset by the impact the RBA's rate hold might have - which was expected by the market - Mortgage Choice suggested a range of money saving choices now that the weather is warming up.

The group said home loan customers could swap the gym for outdoor exercise, clothes swap with friends instead of buying, and have dinner parties at home instead of eating out.



  • by Country Broker 5/09/2012 11:17:42 AM

    oh we wish for this to happen I cannot see it on our area .