Historically low home loan interest rates are expected to remain in 2014 as households continue to manage and reduce their debt levels.
The latest RBA data shows that businesses and individuals are counting to reduce their reliance on debt according to the latest RBA data.
Private sector lending rose by 0.3% in November 2013 and 3.8% November Year to Date despite historically low interest rates.
While this does not imply we will have a cut in interest rates in the short term, Economists are saying that the reluctance of consumers to borrow compared to the pest will tempt the Reserve Bank to leave interest rates lower for longer.
The relatively low credit growth can be interpreted to mean consumers and businesses are uncertain about job security and profitability and this adversely impacts borrowing levels. While confidence is improving more job creation may be required to stimulate growth.
Mortgage Broker What If We Finance is seeing increased growth in home loan refinances and recommends now is a great time to look at your home loan and extract the maximum possible savings.