Professionals The Wright Team
Shop 12/108 Princess Road Balga
08 9349 4655Contact us
The RBA has now met twice times this year and still no movement in interest rates (that’s now over 18 months since any movement), the question on everyone’s mind is whether or not interest rates will go up this year.
Most predictions point to interest rates holding steady for this month at least, continuing the longest run of low rates in Australian history.
The last time the official cash rate was changed was back in August 2016, when it went down by 0.25 percentage points to 1.5 per cent.
The last time that Australia saw an interest rate rise was over 7 years ago when they reached 4.75 per cent.
There are predictions that 2018 will be the year that we see interest rates rise again, however there are some factors that may help keep rates steady for the moment, including slow wages growth and the fact that house price growth is starting to slow.
A hike now could put a lot of pressure on Australian households.
It may be inflation that helps the RBA pull the trigger. Inflation is currently sitting at 1.9 per cent, just shy of the coveted 2 per cent mark. The last time the RBA lifted rates inflation was at 2.5 per cent.
The above factors, among others, will influence when the RBA decides to lift rates and are therefore worth keeping an eye on. But even if an interest rate rise a still a far off prospect it’s worth being prepared for them if you’re a mortgage holder so as not to be caught off guard.
There is never a guarantee that interest rates will hold steady, so the best thing that homeowners can do is get ahead on their loans while rates remain low. This will create a financial buffer for any possible rate rises in the future.
Professionals The Wright Team is located in the heart of Balga & services the entire region with a specific focus on suburbs including Balga, Mirrabooka, Koondoola, Girrawheen, and Westminster.