Mortgage holders can breathe easier for another month after the Reserve Bank of Australia today announced they would not be increasing interest rates.
In a sign that the Reserve Bank thinks the Australian economy is continuing along healthy as is, it opted to keep rates on hold at the official rate of 4.5 per cent.
Each 0.25 per cent interest rate rise adds another $50 to the monthly cost of an average mortgage. Australian mortgage holders are already paying about $300 more per month in repayments than they were a year ago.
Mortgage holders on variable interest rates are being charged approx 7.4 per cent by their lenders.
With the drawn out Federal election, the property market has remained steady in recent weeks and a slower than usual start to the Spring selling season (in part due to the poor Victorian weather) is predicted.
The next annoucement by the RBA is on October, 5th