Big 4 Banks all say the time has come
Recent history has taught us that there’s no such thing as “a sure bet” where interest rates are concerned. However, it’s fair to say that optimism is definitely growing among local homeowners who have their fingers crossed that the Reserve Bank’s first meeting for 2025 will bring welcome news for mortgage holders.
For the first time in quite a while, we saw consensus this week in the forecasts from all of ‘The Big Four’ Banks. All four are now predicting that there will be a cut 0.25 per cent to official interest rates when the RBA meets in a couple of weeks.
With the release of the latest quarterly inflation data showing that our national inflation rate has eased more quickly than many expected, most market observers believe we will see the start of a downward trend in interest rates kicking off this month.
In fact, in revising their forecasts this week, the NAB said “While updating the timing from May to February for the first cut, we still expect 75 to 100 basis points in reductions in 2025. By February 2026 they think the cash rate will hold at 3.1 per cent – down from the 4.35 per cent where it has been since November 2023.”
Yes, that’s a total of 1.25 per cent in reductions in the next year or so, which would be good news for anyone with a home loan, or who is planning on taking one out. So we’ll keep our fingers crossed for February 18th.
In the meantime, activity levels in the local market remain positive, with good results being achieved on the limited number of properties available for sale.
A prime example was the recent sale of a three-bedroom home in Juniper Crescent, Thomastown (pictured). This property attracted good enquiries from young families and investors since it hit the market late in 2024, with a very pleasing sale being concluded while many people were still on holidays.
Remember, our team at Barry Plant Thomastown are always available to assist you with all your property questions, so if you need any advice or assistance, you can give us a call this week on 9466 3233.
Best wishes,
Con Constantinou
Barry Plant Thomastown