Added by Pat Williams on September 3, 2013
According to an online poll, a majority of Australian homeowners expect the RBA to leave rates on hold on September 3 after the reserve bank board decided to drop them to a record low in August.
The survey of 482 homeowners by mortgage broker Loan Market revealed 51 percent of respondents did not anticipate a rate reduction this month while 38 percent felt the RBA would lower rates another 25 basis points.
Loan Market director Mark De Martino said he agreed with the majority of home owners because the RBA still needs time to assess the impact of the last rate reduction and that any further rate movements will probably be made after the election.
“A cash rate of 2.50 percent has injected lots of activity into the home finance market over the past three weeks. Our online enquiries were up nearly 30 percent after the August rate reduction, and this was a result of all lenders making the right competitive moves,” Mr De Martino said.
“The looming federal election will likely cause the RBA to wait-and-see who ends up in the lodge along with their economic promises they might implement. The RBA will want to work alongside the new government’s pending or saving commitments,” he said.
Mr De Martino said a September rate cut seemed unlikely because the financial markets were not pricing in a rate reduction with the same confidence and certainty they did in August or May this year.
“Most of the major banks and markets are anticipating rates to end the calendar year at least 25 to 50 basis points lower than they are today. In the home finance space, this is evidenced by the continued dropping of fixed variable rates. For the broader economy, how the dollar performs over the next few weeks will be critical for the RBA’s rate decisions for the remainder of 2013.”
For more information visit the Loan Market’s website at www.loanmarket.com.au
About Loan Market
Founded in 1994, Loan Market helps home owners across Australia and New Zealand find the right home loan. With a team of over 600 mortgage brokers that assisted over 30,000 people last year and with 9/10 customers saying they would use Loan Market again, Loan Market is one of the most trusted brands in Australasia.