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REIA highlights impact of RBA hold decision

The Real Estate Institute of Australia has highlighted how the Reserve Bank of Australia's decision to hold interest rates for another month at their present level is bad news for homebuyers across the country.

The Real Estate Institute of Australia (REIA) has highlighted how the Reserve Bank of Australia's (RBA's) decision to hold interest rates for another month at their present level is bad news for homebuyers across the country.

REIA president Pamela Bennett commented: "A drop of just 0.25 per cent of the cash rate would have ... saved homeowners AU$102 per month in loan repayments compared to the June quarter.

"Unfortunately, homeowners won't be able to enjoy such savings."

She added that with the base rate remaining at 3.25 per cent for another month, the news is also disappointing for first home buyers across the country. It follows a 25 basis point reduction in September, but many banks failed to pass on these falls to their customers.

Last month, RBA financial stability department head Luci Ellis argued the Australian property sector is in a fairly stable position at present and therefore there is very little chance of a US-style market crash in the coming years.

Posted by Craig Francis

- interest, rates, property, REIA, RBA, US

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