RBA UPDATE | Effective December 11, 2024
There will be no relief for borrowers as they enter the holiday period, with the Reserve Bank of Australia (RBA) opting to keep the official cash rate steady at 4.35% during its final monetary policy meeting of 2024.
The decision aligns with market expectations, marking the ninth consecutive time the central bank has kept the cash rate unchanged where it has remained for over a year since the cash rate last moved (November 2023).
Key Media reported that although inflation is easing, the central bank remains cautious about acting prematurely.
The cash rate has been a key focus for borrowers, businesses, and mortgage brokers, as higher rates continue to weigh on household budgets and borrowing costs. Yet some experts aren’t expecting a rate drop until May 2025.
Meanwhile, PropTrack data recently revealed that a median-income household earning over $112,000 per year can now afford just 14% of homes nationwide, compared to 43% three years ago.
Data from the MFAA reveals that brokers are writing more than seven out of ten home loans (74.6%), with refinancing emerging as a key driver of growth in the current economic environment.
Mortgage brokers offer access to a broad panel of lenders, expert guidance, time-saving convenience, and ongoing support, making them a preferred choice over dealing directly with lenders.
If you would like to understand more about your options as a borrower, get in touch with a mortgage broker today.
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