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Buyers rejoice as cash rate holds

By Kevin Kelly

Finding someone who was surprised by the Reserve Bank of Australia's most recent decision on the official cash rate would be no easy task. You can look all you want, but you'd be hard pressed to find either a home buyer or an industry insider who was taken aback by the RBA's announcement on 5 August that the cash rate would stay steady for another month.

That's because the RBA has elected to keep the rate totally unchanged for the entirety of the preceding year, holding it at the historically low rate of 2.5 per cent. And home buyers, whether looking for real estate in Eaton or for houses in Bunbury, have been reaping all the benefits. 

Loan Market Director Mark De Martino was positive about the decision. 

"A couple years ago, I doubt anyone would have thought you could have got a fixed rate below 5 per cent for five years," he said in a 5 August release. 

Nonetheless, he warned there were other considerations that buyers needed to think about before taking advantage of the resulting low interest rate environment and getting a fixed term loan. These include the direction of future interest rates, as lower rates later on would mean buyers could've saved more on their mortgage.

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