No Rate Move As First Home Buyer And Investor Property Battle Looms
RBA Commentary for November 2019 The official cash rate remains at 0.75% as: · Inflation sits around 1.6%; · The Australian dollar is hovering around 0.69c US; and · Unemployment rose to 5.2%. The Reserve Bank of Australia (RBA) left the official cash rate on hold for November, as a battle for property looms between Australian first home buyers and investors. Low property prices, reduced lending criteria and the lowest home loan rates since the 1950s are encouraging both first home buyers, and investors to make a move now to purchase property. Investor Home Loan Activity Investor home loan commitments rose markedly since June 2019 . Over June, July and August, investor mortgage committments jumped by 11.6%. Given that investor activity dwindled from a peak of 43% in mid–2015 to a low of 25.8%, the change is significant. Economists indicate investor market decline links directly to capped interest–only lending. Investo