Interest Rates News

RP Data Research Director Tim Lawless says the softer housing conditions through September may have moderated earlier Board concerns about market overheating.

However he notes, “it will be important to monitor the trend rate of growth, particularly across Sydney and Melbourne, where values have risen substantially more than any other city.

“Investor interest in these markets has been significant compared with other capital cities and compared with historical ratios of owner occupier loans to investor loans.

“If investor interest in these markets doesn’t moderate we can expect the RBA, in conjunction with APRA, to intervene via prudential regulation of the banking sector to attempt to slow down the level of investment lending activity in the market.”

Chairman of mortgage comparison service Loan Market, Sam White, says a stable rate is good news for first home buyers and property owners.

“Spring is traditionally a time for people to be on the move and the fierce competition among lenders, offering extremely low fixed rate products and even cash incentives, means consumers now have more options than ever to secure the best deal,” he says.

The RBA meets again on November 4.

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