Mortgage News

It may be an election month and if we were to see a repeat of the last election, we would be embracing an unwelcoming rate rise right about now said Albert Achanfuo-Yeboah.

Fortunately the Reserve Bank has held of leaving rates at it’s previous and now current standing of 4.5%.

Albert Achanfuo-Yeboah of Oasis Home Loans-SOUTHERN HIGHLANDS also said that it seems that with new home sales plummeting to the lowest level that they have been at in 17months, property sales has more than likely played a key role in the Reserve Bank’s decision.

Article Extracts Courtesy of SMH BusinessDay. Written by Carolyn Cummins. 31 July 2010.

THE development and construction industry was another sector of the economy that was relieved to see better inflation figures during the week.

The June quarter consumer price index rose 0.6 per cent, which was lower than expected and means it is unlikely interest rates will rise in the short term.

”The Reserve Bank wanted an inflation rate of around 2.75 per cent in the June quarter and its wish has been granted,” he said. ”With underlying inflation now back in the Reserve Bank’s target band, interest rate settings are firmly on hold.”

Simon Reibelt from Oasis Home Loans Northern Beaches said that borrowers may feel to be in limbo due to the recent spate of data pointing at either/or rates rises or decreases over the next couple of months.

Property price expectations have all but flattened out, with experts convinced that new research data has shown Melbourne will be most affected followed by Sydney. SMH BusinessDay reported that the southern state will see a downgraded projected forecast of just 0.7 % growth over the next year, while Sydney will see only a 2% increase in property prices.

Simon Reibelt from Oasis Home Loans Northern Beaches said buyers have looked at the late continual rate rises equalling lesser affordability. This came in light of the latest weaker inflation figures.

Article Courtesy of SMH BusinessDay.

The Prime Minister Julia Gillard will be heading into the polls with the a sign of good relief as the latest inflation figures show a decline, effectively placing a halt upon the prospect of higher mortgage rates in the lead-up to the election. The RBA’s meeting on Tuesday will more than likely vote to keep the interest rate on pause after acknowledging the rate of inflation fell to 2.7 %,a first in three years it has been below the benchmarked 3% for the RBA.

The benchmarked rate of inflation of 0.6% should of only looked to be 0.3% had it not been for the once off 25% increase in the tobacco tax.

”There will be no interest rate hike next week,” said a Macquarie Group economist, Rory Robertson. ”If you were thinking the Reserve Bank might make the election campaign interesting, think again.”

Simon Reibelt from Oasis Home Loans Northern Beaches.

SMH BusinessDay has reported on the increasing focus of the RBA’s moves that the election has brought about. Interest rates either rising or decreasing has significant bearing upon the marketing campaigns of our Leaders. As a rate hold seems more and more on the cards at the Boards next meeting, it will play more into the hands of Labor. It’s predecessor Kevin Rudd had managed to avoid the nations recession, which was a rarity amongst developed countries such as our own. Inflation figures are a key indicator for the RBA come time to making their decision regarding the June Quarter.

Simon Reibelt from Oasis Home Loans Northern Beaches said that the RBA’s main concern is to keep inflation in check, keeping in mind of the European debts and weight that are pointing towards a double dip recession.

Article courtesy of SMH BusinessDay. Sources by Chris Zappone, AAP, Reuters. 26 July 2010.

Australia’s producer price index at the final stage of production rose 0.3 per cent in the June quarter, less than economists had predicted, as the costs of vehicles and meat fell.

“There were less price pressures in production than we expected, which could help limit inflation through the second half of the year,” said Brian Redican, a senior economist at Macquarie. “The RBA should be pleased with this.”

Even so, today’s numbers may increase the likelihood that the RBA will leave rates on hold at next week’s board meeting. Economists had been tipping that producer prices would rise 0.8 per cent for the June quarter.

Simon Reibelt from Oasis Home Loans Northern Beaches.

SMH & Domain has reported upon Investors interpretation of the current Interest Rate hold period. Effectively it could be considered that the RBA has effectively cooled the property market off for the time being.

The board will need to juggle that if they do not raise rates enough the property market will continue to grow too quickly, though too much and the wider economy falters.

Simon Reibelt from Oasis Home Loans Northern Beaches said that global factors such as the European debt crisis can stall the rise in interest rates aiding Investors to reconsider purchasing property strengthening our home market further.

Article Courtesy of SMH BusinessDay. Written By Mr Chris Zappone, 22nd July 2010.

Low-income tenants are finding it increasingly difficult to pay for a roof over their heads as rents surge and the national rental assistance scheme fails to keep pace with soaring costs.

Simon Reibelt from Oasis Home Loans Northern Beaches.

SMH has reported this morning that with the RBA’s next meeting scheduled in 13 days time, the Prime Ministers election campaign will be  exposed to an unprecedented possible Interest Rate Rise during this, the most sensitive period. The Board’s minutes of its latest meeting pitch that the increase could be on the cards if inflation figures are not within contained acceptable measures.

Simon Reibelt from Oasis Home Loans Northern Beaches said that this would not be the first time the RBA has committed to a mid-election Rate Rise, when John Howard was campaigning in 2007, he was caught off guard by the boards move in light of the Banks pressure for the increase.

Investors and owner occupiers showed their strengthening confidence in the property market by turning out to lead a 61% clearance rate figure over the weekend reported Domain & SMH. Commitments were up from previous weeks, though were still down from a year ago when the Government’s Stimulus Packages were in full swing. Agents commented though that the trend of rising auction rates was increasing.

Simon Reibelt from Oasis Home Loans Northern Beaches said that with people’s increasing confidence with the property market along with greater job security has allowed more decision’s to leap into the market.