RBA Leaves Cash Rate at 4.75 Percent

The Reserve Bank of Australia left the official cash rate at 4.75 percent at the April board meeting. The RBA said that the non-movement of the cash rate is due to the strong prices of commodities and the increase in private investments.

Mortgage Refinance Essentials

Home loan refinancing can cut your interest rates, combine your debts into one account and get you a better loan deal. Before deciding whether or not to refinance, you must be sure that refinancing will give you more financial benefits and rewards than your current loan.

No Guarantee of Lower Mortgages

There is no guarantee that mortgage rates will decrease in the near future, there is no concrete way that interest rates will go down due to the banking reforms that the government will introduce.

Perth Property Market Still Suffering

In December 2010, the real estate market of Perth was at a decade-low. However, the worst is yet to come due to decreasing house prices. In a forum by the Australian Property Institute that capital gains for the last three years have been cancelled by median price falls even though property listings went up.

Property Slumber in Perth Ensues

In terms of median house prices, Perth is the worst performing state capital in Australia. Figures show that the median house price in the city went down by 1.9 percent during the last quarter in 2010 en route to a 2.3 percent decline for the entire 2010.

New Home Sales in Western Australia Recover Again

After being down, the construction of new homes in Western Australia have bounced backed again. From September to November 2010, 3104 homes were sold, this figure is three percent higher than the previous quarter.

Bursting the Property Bubble

Australian can prevent the property bubble if banks are made to yield housing credit to rental costs. Calling for changes in lending policies that would strictly regulate the size of home loans. The cap of home loans must be based on the rental value of the property that can be used as security.

Building Approvals for New Western Australia Houses Down

Building activity for new homes in Western Australia has dropped to a one-year low. In the third quarter of 2010, only 5432 new homes were being built. This rate is 19.9 percent lower than the volume of new homes constructed during the second quarter of the year and a bit lower than the 5581 homes being built by the third quarter of 2009.

Fixed Rate Home Loan Demand Increasing

Fixed rate home loan demand is increasing of all approved home it was recorded that approved fixed loans in November was at a 29-month high of 11 percent. In October, the rate was just 7.7 percent.

First Home Buyers Decreasing in Perth

From September 2010 to October 2010, first home buyer grants went down by 7.6 percent. October’s rate is also 60 percent lower than the 2419 first home grants in June 2009 which was the height of the housing stimulus for home buyers.

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