Cash rate stays low for another month

By Kevin Kelly

Buyers of real estate in Bunbury have had a good run for some time now and these conditions are set to continue for a little while longer.

That's because the Reserve Bank of Australia (RBA) has made its cash rate announcement for May and has decided the 2.5 per cent rate will stay in place for at least another month.

Some sectors are still struggling to stay above water, but the RBA revealed that residential construction is one of the best performers of recent times.

The Housing Industry Association (HIA) said it will be necessary to keep rates low for some time yet, especially if the property market is going to continue to benefit.

"A period of stability will maintain a positive environment for residential construction activity to boost economic growth throughout 2014 and into next year," noted HIA Chief Economist Harley Dale.

Interest rates are expected to stay low, as the RBA's Governor Glenn Stevens suggested this is the "most prudent course of action".

This will no doubt bring good news to anyone hoping to get onto the property ladder, as it typically means mortgage lenders are able to offer you the most competitive products.

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