Raine & Horne Pearl Beach / Patonga
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Rates on hold good news for property owners and buyers

March 26, 2024

The Reserve Bank of Australia (RBA) held the cash rate steady at 4.35% during today's March monetary policy meeting, a move that has been greeted with much relief by real estate and finance experts. 

In its statement, the RBA said that "returning inflation to target within a reasonable timeframe remains the Board's highest priority" and that it will not be "ruling anything in or out." 

Angus Raine, Executive Chairman of Raine & Horne, remarked that the real estate market was progressing smoothly, with vendors actively listing their properties. At the same time, there is an extremely healthy flow of prospective buyers attending inspections. 

Angus said the Reserve Bank's March decision to leave rates on hold will help maintain these healthy market conditions. 

"Homeowners are opting to sell buoyed by the improved property returns over the last year, with values up by an average of over 9% nationally and much higher in some states. 

"Meanwhile, the steady flow of properties for sale provides choice, especially for first-time buyers or families looking to upgrade to their next home."

On the mortgage front, Craig Betalli, Senior Broker at Our Broker, reports that while home loan applications were a bit patchy, “there is a considerable number of buyers who postponed their property purchasing intentions 6 to 12 months ago and have now resumed active search.”

Craig added that the decision by the central bank to leave the cash rate on hold has even created "some level of urgency as people start to get a vibe that the market is moving." 

Regarding a potential rate cut, Craig expressed, "I would like to hope that the RBA cuts at its next meeting, but this hinges on the vital economic indicators. 

“These encompass inflation, which currently exceeds the RBA's target range of 2-3%, along with factors such as employment, consumer expenditure, household debt, and others crucial to sustaining economic vitality."

Craig emphasised that borrowers shouldn't rely solely on the RBA to reduce the cash official cash rate for relief on their monthly mortgage repayments. 

 He suggested that borrowers should consider negotiating a better rate with a finance specialist like Our Broker instead of waiting. "Using a broker not only safeguards a borrower’s credit history but also prevents potential adverse effects on their credit score that may occur if they attempt to refinance directly with a lender and are rejected," Craig advised. 

If you're considering refinancing your mortgage or obtaining a new loan, contact Our Broker at 1800 913 677.