There's been plenty of speculation over what this month's cash rate decision would be, and the Reserve Bank of Australia (RBA) brought it to an end earlier this week. On 3 November, members of the RBA board met to discuss the current conditions in the economy, which led them to decide the cash rate would stay at two per cent for another month.
RBA governor Glenn Stevens said there are some reasons for optimism. For example, low interest rates are helping support borrowing and spending, giving people an opportunity to buy real estate in Australind.
However, the situation isn't quite right at the moment to justify a change to the official cash rate. The board pointed to the fact conditions had "firmed a little" over the past few months, which was also a factor that contributed to their decision.
This move is hardly surprising, the Housing Industry Association (HIA) indicated.
"Any further interest rate reduction by the RBA – which seems less likely post their November decision – would need to be timed and communicated to ensure it mitigated rather than exacerbated the adverse impact of a tighter financing environment," noted HIA chief economist Harley Dale.
Dr Dale explained the economy is in a delicate state of balance at the moment, another reason why the RBA is unlikely to have brought in a rate rise or reduction. The final announcement for the year is due on 1 December.
The low cash rate does open up opportunities for anyone who hasn't yet bought real estate in Australind. With lenders still offering some favourable rates, now could be the time to secure a home loan.
Speak to your lender about how much you can borrow, and we'll help you find a home that fits with your budget and requirements.