“As well as falling property prices, and therefore a smaller mortgage, first home buyers are spoilt for choice when it comes to home loans on offer, with historically low variable and fixed rates, alike, in market.”
Economists surveyed by finder.com.au collectively expect the cash rate to remain stagnant, as it has for more than two years, due to low inflation and low wage growth, despite the unemployment rate dropping to 5 per cent.
“Higher interest rates and tighter lending restrictions by the banks mean that Reserve Bank of Australia won’t be adjusting the cash rate soon,” LJ Hooker head of commercial Mathew Tiller said.
“There is little chance of a change in the official cash rate in the short term, especially given the ongoing soft inflation numbers and the slowdown in the housing market.”
Seventy-eight percent of those surveyed expect the next rate change, whenever it does happen, to be an increase.