RBA holds firm this month, keeping the cash rate at the record low setting of 0.25%

Amidst rising speculation that interest rates are set to fall further, the RBA chose to hold firm this month, keeping the cash rate at the record low setting of 0.25%.  Such a low setting for interest rates, along with policies aimed at ensuring liquidity across financial markets, has been a key factor in supporting housing market activity and insulating home values.  With owner occupier mortgage rates for new loan originations typically between 2% and 3%, housing finance commitments have surged, and CoreLogic’s estimate of home sales over the September quarter is tracking slightly higher than a year ago.  Nationally, housing values are down 2.1% since peaking in April. However, the most recent trend is showing the market is…



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