Homeowners who have feared interest rate rises during 2011 can start to breathe a sigh of relief as reports start to emerge that interest rates could yet again be on the way down later this year and into the New Year.
The current cash rate stands at 4.75 per cent and hasn’t changed since Melbourne Cup day in November 2010. It’s believed that interest rates won’t rise any time in the near future due to slow consumer spending and the hopes that lower interest rates will help stimulate the Australian economy.
According to the ASX Futures rate tracker, their prediction for the last interest rate announcement said there was a 90 per cent chance of the rate remaining steady (which is what happened) and a 10 per cent chance of the interest rate decreasing.
For Mudgee homebuyers and mortgage holders, this is welcome news. We’re all conscious of the increases in the cost of living, so having a consistent interest rate relieves some of the pressure that an increase would have had on households.