WITH inflation in Australia rising as a result of two main drivers – rising fuel costs and construction costs, the Reserve Bank of Australia has recently increased the cash rate on loans to 1.8 percent in a bid to slow the heating economy.
Following in kind, major banks have made similar sized increases in their variable mortgage rates, adding strain to household budgets across the country.
The good news, according to Ray White chief economist, Nerida Conisbee, is that inflation rates are forecasted to ease by years end, most likely resulting in a decline in interest rates as a result.
In favour of OECD forecasting, Ms Conisbee states, “As to when interest rate rises will end, I personally prefer the OECD’s outlook with inflation peaking at the end of the year and a slowdown in interest rate rises at the same time. For now, however, we are looking at continued increases in interest rates until the end of the year.”
With an increase interest rate rises likely to continue until the end of the year, getting ahead of the concurrent costs could be as pertinent as refinancing your mortgage by exploring the possibility of a more suitable home loan.
You can explore home loan refinancing with expert advice with Mike at Loan Market situated at 281 Wyndham Street Shepparton or call 0438 372 280.
