October 2018 cash rate on hold at 1.5%

As expected, the RBA kept the official cash rate on hold for the 25th month in a row at its October meeting.

During September, a number of lenders made out-of-cycle rate rises to account for their increasing borrowing costs, so we expect home loan interest rates to remain relatively stable for the time being. Forecasters are predicting a mild downturn in home values in Melbourne and Sydney of around 5 – 10% this year but foresee all property markets returning to positive annual growth by the middle of 2019. Right now, it’s a buyer’s market, so don’t wait to jump in and negotiate a bargain this spring.