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First home buyer activity up thanks to interest rates

By Kevin Kelly

Quick question: What do pancakes and the cash rate have in common? We'll give you a few seconds to ponder that. Haven't figured it out? The answer's quite simple: You don't want either to rise. 

The cash rate has been set at a historic low of 2.5 per cent since August last year, which means the Reserve Bank of Australia has been keeping it at the same level for a whole 11 months. 

This has created a low interest rate environment in the country for the last 12 months, which Loan Market director Mark De Martino says has helped home buyers. 

"The low interest rates of the past year have been great for consumers either looking to get into the property market or pay lower interest rates on their existing mortgages," said Mr De Martino in a 1 July release. 

Despite the fact that we've been hearing pessimism about the prospects for first home buyers, Mr De Martino further pointed out that first home buyer activity has spiked, making up as much as 50 per cent of Loan Market's home loan enquiries so far this year. 

"As the pool of prospective first time buyers continues to grow, we could eventually see them become the primary drivers of the property market," he said.

It appears there's no excuse anymore to avoid that piece of real estate in Australind you've been eyeing up. 

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