Perth, WA -- (SBWIRE) -- 10/22/2014 -- Last week, the Reserve Bank of Australia has kept the cash rate unchanged at 2.5% as expected. The announcement marks the 14th month since the rates have changed. The news is particularly beneficial for first home buyers and property owners.
"Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets. Dwelling prices have continued to rise over recent months," notes RBA Governor Glenn Stevens.
Despite significant rising property values in some capital cities, the RBA has kept the cash rate the same.
Rates are expected to remain unchanged throughout 2014 but some economists are predicting an increase in the new year. Comparison site finder.com.au polled economic experts regarding the rates who collectively expect increases starting from next year.
Although no one can know for certain, a majority of respondents anticipate that increases are likely to occur in the third quarter of next year. Only a small percentage expect the rates to change from October onwards.
The cash rates are expected to see a gradual increase over a period of two to three years until they return to their 'normal' levels of 4% according to Finder spokesperson Michelle Hutchison. Property buyers are encouraged not to overextend themselves in the near future in the event that rates do see an increase.
Spring is generally the best time of year in the property market. With increased competition from lenders, consumers are in prime position to take advantage of great deals and incentives. Those new to the market should compare available mortgage options to get the best possible deal.
About First Home Owners Centre
FHOC is the First Home Owners division of HIA award winner Aveling Homes, one of Western Australia’s most quality focused building companies. What this means for you is that above all else, quality and affordability is what you can expect when you choose FHOC.
Visit the FHOC website at http://www.fhoc.com.au for more details about our services and available financing options for first time home buyers. Our financial experts work with you each step of the way to build the home of your dreams.
First Home Owners Centre Contact Information
24/7 Sales Enquiry Line: (08) 6144 1088