What will interest rates do next?
There’s no doubt that quite a few Melbourne homeowners, (along with those who are trying to become one), are looking towards Tuesday 6th August with a mix of hope and just a little nervousness.
In case you weren’t aware of it, that’s the date of the next scheduled meeting of the Reserve Bank of Australia, where they will review our nation’s economic performance and decide if they need to adjust our current interest rate settings in order to meet their targeted annual inflation rate of between 2 and 3 percent.
Clearly, in the light of the most recent monthly figures from the Australian Bureau of Statistics which indicated that our inflation rate had hit 4 per cent in the twelve months to May, there are a few economists suggesting that the RBA may move official interest rates up again in August to bring our economy closer to their preferred numbers.
However, we did see a move by the NAB this week to cut the interest rates on their fixed term home loans, which some observers have suggested is an indication that the NAB doesn’t think that rates will rise next month.
Whether those financial commentators prove to be correct or not, the move by the NAB was certainly welcome as it will certainly increase competition between the lenders to compete for new business…and that’s always a good thing if you’re shopping for a home loan as a new buyer or refinancing an existing loan. Don’t forget that there are still quite a few homeowners who still have a fixed rate loan that they locked in a few years ago when interest rates were at record lows, but are due to be refinanced later this year or early in 2025.
The important thing to keep in mind, whether they raise interest rates or not, is that if you are planning on making a move before the end of 2024, then you’d be wise to start your preparations now. As I mentioned in LAST WEEK'S POST, the official start of the Spring selling season is getting closer so a bit of planning now could save you thousands of dollars later in the year.
If you need any assistance in preparing your property or would like an up-to-date appraisal to help with your planning, don’t hesitate to give us a call at Barry Plant Thomastown on 9466 3233.
We’re always happy to help.
Best wishes,
Con Constantinou
Barry Plant Thomastown