Mortgage News

The Reserve Bank of Australia is now noting that rising house prices indicate that Interest Rates are not high enough.  The Board’s reports show that they are now looking at rising house prices as an indicator to the economy’s strength and drawing this relation to setting rates. Bank representatives at the majors see that each time the RBA meet, the chance of a rate rise will be a 50/50 chance until either the growth rates slow or until lending approval figures rise reports SMH.

Simon Reibelt from Oasis Home Loans Northern Beaches said that households should always be prepared in they’re budgeting for their mortgage repayments to increase and predicate that rates will now strongly increase into the near future.

SMH has reported that the RBA is likely to keep Interest Rates on hold when it comes to it’s meeting in April next month meaning good news for home owners. Mortgage and lending figures have spurred the hold for the moment as it has lead to uncertainty and that the Board noted slower lending during the latest period. The board weighed up that new home approvals and developments had raised slightly, though house prices had started to rapidly increase at an alarming rate.

Simon Reibelt from Oasis Home Loans Northern Beaches stated that if the RBA decided to keep rates on hold for one month at a time to ensure its decisions were correct then it would take small steps at a time. It was expected though that the Board would raise the rate a few times over the next year as our economy strengthened.