Mortgage News

SMH has reported that in the month of February, new home sales slumped sharply due to increasing interest rates and the government’s stimulus packages drying up. The figures show that in January, housing sales increased by 9.5% but then downsized by 5.2% in the following month. The RBA’s 75 base point rise between October and December along with more projected rate rises in the coming months means new home sales shall continue to suffer as it becomes more and more expensive to enter the market or keep current mortgages a float.

Simon Reibelt from Oasis Home Loans Northern Beaches looked at the figures as indicators that the governments tactics to curb inflation and spending would slow house purchases until the normal balance returned. Home owners should always be looking out for better rates or refinances for their mortgages while purchasers should be trying to jump aboard while the rates were still subdued.