Over at Your Mortgage, an Australian mortgage website, there is a report that analysts are expecting the interest rate to drop to 1.5 per cent this year. Earlier, the Reserve Bank of Australia (RBA) reduced the cash rate 2.25 per cent. This is left unchanged as of the moment but analysts declare that it won’t be surprising if the rate gets cut to 1.75 or 1.5 per cent later on. The basis for this prediction includes bigger challenges to the mining sector, softening of China’s economy, and the increased value of the Australian dollar.
With this interest rate cuts, people who are planning to make home loans or go into property investment should exercise closer care regardless if they are a first-time buyer or a seasoned investor. The interest rate cuts are coupled with rising prices in properties across Australia such as the 4.5 per cent rise in Melbourne, resulting in the housing bubble.