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Another month at 2 per cent of OCR

By Kevin Kelly

Among the many factors that might determine whether or not you decide to buy real estate in Eaton, Australind or Bunbury, the level of the cash rate is probably one of the most important. If it stays put, then interest rates remain at their record-low levels, but if it falls, it could mean a mortgage will be more affordable than ever. And while there is a third option – the cash rate moving up – let's be honest: That's not likely to happen anytime soon. 

In fact, the Reserve Bank of Australia (RBA) just proved this point right on September 1, when the board elected to keep the cash rate steady at 2 per cent for yet another month. This is now the fourth month in a row that the rate has stayed put. 

"Home owners and prospective buyers across Australia will welcome the sustained low interest rate setting, which will continue to spur buyer demand and help to offset the effects of softer economic conditions outside of Sydney and Melbourne," commented CoreLogic RP Data head of research Tim Lawless. 

Mr Lawless pointed out that both investor activity and the housing market in general have slowed to a more sustainable pace recently, which will no doubt have pleased the RBA. This, combined with the fact that inflation is keeping to target and the unremarkable growth of the economy, means it is unlikely that the cash rate will get higher any time soon. 

This will be positive news for anyone consider purchasing real estate in Bunbury South and surrounding areas. They can look forward to a continued period of ultra-low interest rates, which means smooth sailing ahead for their monthly budgets.

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