This was no surprise given that at its last meeting the bank confirmed that to consider an increase it would need to see underlying inflation between 2% and 3% on a sustainable basis, full employment and materially higher wages growth.
Increases to the headline inflation rate, driven mainly by the rising cost of fuel and new housing, have however seen markets speculate that rates will rise before the RBA’s forecast date of 2024.
Whilst overall home loan interest rates are still close to historical lows, this speculation has seen many lenders increase their fixed rates.
Rates are at a record low and lenders continue to offer very competitive rates.
According to REIWA the total number of loans taken out in WA during the September quarter decreased by 6.7 per cent, however on an annual basis, loans are up 30.2 per cent.
The average loan size increased to $435,456, which is 1.1 per cent higher than the June 2021 quarter and 9.8 per cent higher than the September 2020 quarter.
It was more affordable for first home buyers to purchase a home in WA during the September 2021 quarter than the June 2021 quarter, with the report showing that the average loan taken out by first home buyers reduced 0.6 per cent to $365,815.
Depending on your circumstances, it’s best to make sure you’re prepared for what could be coming next. This could mean refinancing or approaching your lender for a better rate.