Experts call for rate cut Down Under
Australian real estate experts are calling for further interest rate cuts in an effort to boost the housing market.
Recently published figures supplied by the Australian Bureau of Statistics show that the number of Australian mortgage approvals during February dropped by 2.5 per cent from the previous month which would seem to suggest that in general home loan rates are too steep for many would be homebuyers to contemplate moving on to or up the property ladder.
The last reduction to its base rate was in December when the Reserve Bank of Australia cut the cash rate by 25 basis points where it remains at 4.25 per cent. When the committee meet again at the beginning of May several leading economists are hoping another rate cut will surface.
The largest drop in home loan approvals occurred in New South Wales which is thought to be as a result of the end of the first time buyers stamp duty exemption.