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It came as a surprise to most when the Reserve Bank of Australia (RBA) announced a freeze on interest rates for July 2023. With the cash rate holding steady at 4.10%, borrowers are given a welcome break after enduring several rate increases over the past 14 months.

The RBA’s decision to maintain the cash rate was primarily driven by one key factor. Despite facing the impact of rising living costs, Australian households have yet to fully experience the effects of the previous 10 rate hikes.

The Reserve Bank of Australia has assured that it will take necessary actions to bring inflation back within their target range of 2-3%. However, according to Philip Lowe, the Governor of the RBA, achieving these figures may not be seen until at least mid-2025.

Although everyday consumers continue to face challenges due to the rising cost of living, there have been several positive developments during the period of successive rate hikes from 2022 to 2023. The unemployment rate is currently at a near 50-year low, wages are on the rise, and house prices are decreasing. For those who have prepared for the rate increases, now could be an opportune time to invest in the property market.

Seeking guidance from an experienced mortgage broker to discuss rates, products, and navigate economic uncertainties can greatly benefit individuals. Staying informed about the cash rate, available cashback offers, and the latest financial news is crucial to ensure one’s financial well-being.

In a market that constantly fluctuates, first-time homeowners are celebrating lower property prices. Meanwhile, existing homeowners anticipate the end of their fixed-rate term and the inevitable shift to a variable rate. Refinancing has become a significant trend in the current climate, with lenders vying for business during this turbulent period.

However, the temporary relief of no rate increase is unlikely to last long. Financial institutions, experts, and reputable news sources in the finance sector are predicting a potential cash rate hike in August. This underscores the importance of conducting a thorough assessment of personal finances to ensure that liabilities are well managed.

If you’re considering refinancing your mortgage but not sure where to start, have an obligation free chat with our team on (07)3505 3099, or enquire here.