Property

Mortgage broker calls RBA cuts 'too little, too late'

Kevin Farmer

A SURPRISE dip in home loan approvals highlights how the interest rate cuts by the Reserve Bank of Australia (RBA) have proven to be too little and too late to lift the Australian home finance market, according to mortgage broker network 1300HomeLoan.

1300HomeLoan managing director John Kolenda said the ABS housing finance figures for November, 2012, fell 0.5 per cent despite market expectations of a 0.5% rise.

He said the disappointing result came after the RBA kept its cash rate on hold in November before deciding to reduce it 25 basis points to 3% in December.

"The RBA has been messing around with the cash rate for the past few years and for most of that time they have got it wrong," he said.

"I believe the official rate is still half a percentage point above what it should be.

"What was needed during 2012 was bold action by the RBA but what they delivered was too little, too late.

"It will be no surprise to see the RBA board lower rates again when they meet next month and we have some commentators predicting rates could go as low as 2% this year.

"I still think more rate cuts from the RBA will help keep the market active although there are other factors which are also influencing consumers."

Mr Kolenda said the domestic economy has been subdued by lack of confidence and cost of living considerations such as rapidly rising utilities prices, food prices and even insurance.

"Consumers have been battered with gloomy economic news for a few years and they weren't helped by the RBA raising interest rates seven times during 2009/10 after taking the cash rate down to 3% in response to the global financial crisis," he said.

"With continuing concerns over the global economy conditions, the threat of a mining slow down, retailers hurting, no property price growth and with unemployment expected to rise the outlook is poor."

Topics:  market rate cuts rba


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Police charge woman with unlicensed driving

Police car. Photo: Alistair Brightman / Fraser Coast Chronicle

The incident occurred on Wednesday.

Council to start Nanango roadworks

South Burnett Regional Council Generic

Access to some properties might be restricted.

Man charged with drug driving

The incident occurred on Tuesday.

Local Partners

Book review: Mia Freedman's book meets her critics head on

IF AUSTRALIA does have a tall poppy syndrome, Mia Freedman has most certainly been a victim.

Model Bella Hadid's see-through dress shocks in Cannes

US model Bella Hadid attends the Cinema Against AIDS amfAR gala 2017 held at the Hotel du Cap, Eden Roc in Cap d'Antibes, France, 25 May 2017.

It’s like she’s become addicted to shock value.

No room for morbid fans

Chris Cornell.

Fans want to stay in the hotel room where Chris Cornell died

Star Wars' 1977 Stormtrooper head banger confesses

A Stormtrooper is responsible for the biggest blunder in a Star Wars movie. Picture: Supplied

Man in most famous blooper in Star Wars history breaks silence

Lyn's knock-out show gets her to next round on The Voice

ONWARDS AND UPWARDS: Lyn Bowtell is through to the battle rounds on The Voice.

'It was bitter sweet to win like that'

Man's amazing comeback from monster crisis

Pat O'Driscoll agents Penny Keating and Doug Webber sold 56 Agnes St, The Range at auction over the weekend.

NOT long ago, he sold his possessions to pay staff. Now he's back.

Report reveals progress on $319m airport upgrade

Aerials of the Sunshine Coast.Jetstar plane in front of the Susnhine Coast terminal, Sunshine Coast Airport.

Over two dozen government approvals needed for airport expansion

Lost dough leaves sour taste after company collapse

Kathleen and John Mahoney from Sugar and Spice Bakery were stung after the collapse of Cantro Pty Ltd and are still owed money.

Supermarket operator collapse leaves sour taste for bakery

Open for inspection homes May 25-31

Check out this weekend's homes open for inspection

How Toowoomba house prices compare in Australia

For sale sign in front of home.

Here's what $700,000 will buy you in Toowoomba, Brisbane and Sydney

Ready to SELL your property?

Post Your Ad Here!