Interest Rates - Buyer Confidence

The market is moving along well over the last few weeks. More properties for sale, more buyers and more sales. Prices have lowered slowly over the last 12 months and as previously noted prices have now flattened. The big news this week is that the Federal Reserve in America dropped US interest rates by 0.5% and they are expected to continue to decrease interest rates over the next 12 months.

“Financial markets in Australia put the chance of a rate cut at the RBA’s December meeting at 97 per cent. The same markets have another four cuts priced-in by the end of next year which, if it were to occur, would take official interest rates down to 3.1 per cent” SMH.

So this is good news for borrowers in the medium term and will help keep prices flat for the time being.