Mortgage News

Article Courtesy of SMH Business. Article Written By Chris Zappone, July 14.

Despite the strength in the jobs market in recent months, other weaker aspects of the economy, such as lacklustre retail sales, have painted a mixed picture of the economy’s health. Consumer spending has been hit by RBA’s six interest rate rises since October – with three of them this year alone.

Dr Evans said the rebound in consumer confidence came after steep falls in the index, suggesting the current period can’t be compared to the months before the global financial crisis or the recession in the early 1990s.

Simon Reibelt from Oasis Home Loans Northern Beaches said that even though the Property Market has been increasing in overall value over the past year, borrowing rates have fallen continuously with the RBA’s dampening rate rises sought to pull in that inflation.

Albert Achanfuo-Yeboah of Oasis Home Loans-Southern Highlands said that maybe it is a good time for an election year and also agreed with a similar comment in smh where they stated “BANK executives are among those hoping for an early federal poll, with many lenders feeling the squeeze of rising funding costs but unwilling to raise mortgage rates during an election campaign”.

SMH has reported over the outlook that Lenders are hoping for early election polls, as the pressure of funding costs continues to bear down on them. Though within this period their unwillingness to raise the interest rates is causing the squeeze. Back in the 2007 election, the majors waited for a two month period before making out of cycle rate changes, even in light of their own funding and return requirements.

Simon Reibelt from Oasis Home Loans Northern Beaches said that banks had overall become more sensitive to political pressures when it was time to reassess mortgage rates and their pricing.

Article Courtesy of SMH Business. Written By Chris Zappone.

The number of home loans issued to borrowers have marked their first rise in eight months, suggesting there has been a revival in the housing market despite higher rates and falling confidence.

The number of home loans rose 1.9 per cent in May, after a 1.8 per cent drop in April, according to Australian Bureau of Statistics figures.

Simon Reibelt from Oasis Home Loans Northern Beaches said that the article commented that Home Loan figures had fallen for the past 7 Months, along with the end of the Governments First Home Owners stimulus packages.

Albert Achanfuo-Yeboah from Oasis Home Loans-Southern Highlands said that from time to time we tend to hear people in public places talking about how lucky we are as Australians and how confident we are in trusting our bank’s to look after and keep our money safe, or is it just that if our money is somewhere else we wont spend it so quick? You be the judge.

On the other hand we as a people demonstrate how we feel about the majors in another way as stated here in smh.

“What’s holding us back from recommending these stocks? Is it the potential for an Australian property market bust? The fact that our banks are reliant on overseas funding to keep things afloat? That they are part of an unpredictable and potentially fragile international financial system? That they haven’t been fully tested in a higher unemployment environment for almost 20 years? Or that they’re exposed to derivative financial instruments which have caused some of them “risk management issues” in the past?”

At the end of the day one could say that just putting our money in an institution could be looked at as placing a bet. To conclude I suppose there is possibly a little roulette hidden deep down in all of us.

Banks will most likely start to push the latest Interest Rate hike cost onto SME’s in an effort to claw back the cost of Funding.

SMH has reported that many businesses will find it harder to trade as long as the fragile economy makes profits harder to generate along with Financing harder to secure.

As long as the Banks cost of funds remains high or increases, then they will look to pass this on at any point possible.

Simon Reibelt from Oasis Home Loans Northern Beaches said that the outlook for the Business sector remained cautious, with financing being very tough right now in the market.

Albert Achanfuo-Yeboah of Oasis Home Loans-Southern Highlands stated “that it seems the market is in disrepute as far as direction is going and the indecisive nature and behaviour of decision makers and lobster’s continues to confuse the consumer and not stimulate positive consumer choices”.

Though it seems this factor isn’t in current news displayed issues and most likely won’t be for sometime it seems the only thing relevant that will continue to take place is the stuff rolling down hill concept which continues to play it’s roll what can be said as true consultation with consumers.

It also important for consumers to know that during an election year or possible year in such cases as when one is needed rates have been higher than they are now. Usually they get held back, however it may not be the case in this instance as this article by smh states

“The governor of the Reserve, Glenn Stevens, made it clear he had no inhibition about lifting rates during an election when he increased the cash rate from 6.5 to 6.75 per cent weeks before the 2007 poll that saw the defeat of the Howard government.

He met the Prime Minister, Julia Gillard, on Friday to discuss the Reserve’s operations”.

SMH has reported this morning over the increasing amount of time it is taking First Home Owners to save for their property deposit. Figures show that increasing property prices and the reduction in the Governments assistance packages has extended the time by another 12 months. It makes the average person a savings time of about 6.2 years and requires $85,800.

Simon Reibelt from Oasis Home Loans Northern Beaches said that the trend for younger people was also now to save up to enjoy travel and commitment for future asset purchase was less of a concern than in previous decades.

“The Reserve Bank has kept interest rates on hold, giving borrowers another month of steady payment costs, despite mounting inflation pressure.

The central bank’s decision today to keep its key cash rate at 4.5 per cent was widely expected and marks the second consecutive month of unchanged rates, as the RBA assesses the pace of the local and global economic recovery”, reported smh BusinessDay.

Albert Achanfuo- Yeboah of Oasis Home Loans-Southern Highlands said that it is probably better that a comprehensive assessment would be in the best interest of decision makers as far as finance goes.

Article courtesy of SMH Business Day. July 5, 2010 – 10:45am.

The rate of inflation rose for the eighth straight month in June, as the cost of food, travel and insurance services rose as Australia edges closer to total employment.

And the rise will test the Reserve Bank of Australia’s (RBA) patience as it heads into its rate-setting monthly board meeting tomorrow, an analyst says.

Simon Reibelt from Oasis Home Loans Northern Beaches said that the RBA was tipped by leading economists to keep rates on hold for the short time being.