From www.propertyinsider.com.au:
Good news for anyone with a home loan. Many economists believe the Reserve Bank of Australia will cut interest rates before the end of the year, in response to falling rates in other global financial markets and a sharp fall in local financial market bonds, which indicate the future direction of home borrowing rates.
There is no doubt the global economy remains weak. The US Federal Reserve looks likely to lower official rates later this month, bringing them below 1% for the first time ever.
In Europe, The European Central Bank has already cut their official interest rate to 2% with indication that more cuts are on the way.
With the falls experienced by local market financial bonds this week, many economists now believe Australia’s official cash rate will be slashed from 4.75% to 4% by the end of the year.
The last time rates reached 4% was during the 1960’s. The lowest rates recorded since that time was 4.25% in December 2001.
For home owners, this would mean variable mortgage interest rates could fall to 5.8% with honeymoon rates falling below 5%, which would mean a saving of more than $85 a month off a 25 year $200,000 home loan.
Good news for anyone with a home loan. Many economists believe the Reserve Bank of Australia will cut interest rates before the end of the year, in response to falling rates in other global financial markets and a sharp fall in local financial market bonds, which indicate the future direction of home borrowing rates.
There is no doubt the global economy remains weak. The US Federal Reserve looks likely to lower official rates later this month, bringing them below 1% for the first time ever.
In Europe, The European Central Bank has already cut their official interest rate to 2% with indication that more cuts are on the way.
With the falls experienced by local market financial bonds this week, many economists now believe Australia’s official cash rate will be slashed from 4.75% to 4% by the end of the year.
The last time rates reached 4% was during the 1960’s. The lowest rates recorded since that time was 4.25% in December 2001.
For home owners, this would mean variable mortgage interest rates could fall to 5.8% with honeymoon rates falling below 5%, which would mean a saving of more than $85 a month off a 25 year $200,000 home loan.
