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Lower mortgage rates could boost property market

Economists say lower mortgage rates could help to boost the Australian property market.

Economists say that lower mortgage rates could help to boost the property market in 2013.




The Reserve Bank of Australia (RBA) reduced standard variable mortgage costs to 6.65 per cent in November last year.




It is doubtful, however, that there will be an interest rate cut with the market predicting a 25 per cent chance. This follows news of increased house sales in the latest report from the Housing Industry Association.




According to the report, Australian property sales rose by 6.2 per cent in December. The association’s reports meant that house prices have risen for three consecutive months. For the last four years, this shows the strongest quarterly increase.




However chief economist at HSBC, Paul Bloxham, said that the boost in housing sales as well as growth in the retail sector is owed to the RBA’s rate cutting.




Economists at HSBC also say that Australia’s mining investment will continue to aid in economic growth within the country.

Posted by Craig Francis





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