RBA cash rate hold gives buyers breathing room
The Reserve Bank of Australia's (RBA) decision to keep the cash rate at 4.35% in August has given borrowers another period of stability after three rate hikes earlier this year.
Annual inflation eased from 4.0% in May to 3.8% in June, but remains above the RBA's 2%–3% target. Governor Michele Bullock said the Board still needs to see further progress and remains prepared to increase the cash rate if required.
A second consecutive hold could also help bring greater stability to the Sydney property market. While experts don't expect an immediate return to the momentum seen earlier this year, a more settled rate environment could encourage more buyers and sellers to transact, potentially increasing choice for buyers.
That could create a useful window for buyers to assess their borrowing position and home loan options while potentially having more properties to choose from. Greater rate stability may also make it easier to plan the next property move based on individual circumstances rather than speculation about the next RBA decision.
About the author – Alex Veljancevski is a Sydney Mortgage Broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.