Rates On Hold
The Reserve Bank of Australia as kept interest rates on hold at 4.35%.
Following its February meeting, the RBA board said higher interest rates were working to establish a balance between demand and supply in the economy.
It says while there were encouraging signs when the new inflation figures came in lower than expected at 4.1%, the economic outlook is still uncertain.
Forecasts are for inflation to return to the target range of between 2% and 3% in 2025.
Mortgage Choice CEO, Anthony Waldron, says the decision was not surprising given that the Australian Bureau of Statistics figures showed inflation was slowing.
He says mortgage brokers are reporting a strong sense of optimism in the market.
Mortgage Choice data shows only 2% of loans submitted have a fixed component, with most customers opting for variable rate home loans in January.
PropTrack economist, Anne Flaherty says the announcement is good news for the housing market.
“Greater confidence around where interest rates are sitting should support further recovery in buyer and seller confidence,” she says.
