Why interest rates remain steady at a 60 year low
The Reserve Bank has resumed its first meeting for 2014 with an excellent result for property investors.
The official interest rate dropped to 2.5% in August last year, and remains stable today at a record 60 year low.
The low interest rate continues to stimulate the housing market, with an increase in home building approvals in November. As the banks compete for market share, mortgages rates also remain low, strengthening homebuyer activity as a result.
In fact, for the first time in four years, a rise in median house price was recorded across all capital cities in the December quarter, with price growth in Sydney moving towards record levels.
Still, opinions remain mixed as to how long the current interest rate level will last. Employment growth is weak, with unemployment rates expected to rise in NSW and Victoria over the coming months. Inflation is also rising, as the US economy improves. These are the economic factors to take into account when the Reserve Bank decides which way the next rate change will go.
Regardless, now is the time to take advantage of record low interest rates. Contact the team at RPA today to secure a low interest property loan, and we’ll find a low risk, high growth investment property for you.