The cash rate fell to 3.85% bringing mortgage rates down

The cash rate fell to 3.85% bringing mortgage rates down

Homeowners all throughout the country enjoy hearing this news. The cash rate 0.25 percentage point cut by the Reserve Bank of Australia (RBA) brings it down to 3.85%. The announcement follows March quarter’s ongoing declining rate of inflation.

Please take a moment to view today’s official statement on the RBA website here.

The cash rate fell to 3.85% at last.
25 basis point decline
The Consumer Price Index (CPI) increased 2.4% over the 12 months to the March quarter, according to most recent numbers published by the Australian Bureau of Statistics.

Underlying inflation dropped from 3.3 per percent in the December quarter to 2.9 per percent during the March quarter. Since December 2021, that is the lowest it has been.

With some even predicting we could see a 50-basis point decrease to 3.6 percent in May, the most recent inflation figures left many analysts almost assured of more interest rate relief to come. The RBA instead adopted a 25-basis point reduction.

RBA Governor Michele Bullock recently observed, “We have come a long way, and it hasn’t been easy; but, we have made good progress on bringing inflation down and maintaining low unemployment.”

“This is a decent state of the economy for us to be in as we enter an uncertain period.”

“The Board will keep examining the data to evaluate if the economy and inflation keep developing as expected.”

Now is the moment to get in touch if you have a house loan and haven’t looked over it recently. We can find out whether your lender passed on the interest rate drop and discuss how it would affect you.

With mortgage rates down, this is a fantastic time for future homeowners to be considering a house purchase.

As part of the federal election, there have also been some interesting housing announcements including the Help to Buy scheme’s extension. Under the program, qualified house purchasers may pay Lenders Mortgage Insurance (LMI) with the government contributing 30 to 40 percent equity towards the purchase, purchasing a property with a deposit of as little as 2 percent.

Labor has promised to extend the current First Home Guarantee so that first-time buyers may buy a house with a 5% deposit from 2026 without copping LMI.

Contact today to discuss whether you qualify.

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