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Interest Rates on hold June 2024

news - Interest Rates on hold June 2024

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Financial markets and mortgage brokers correctly anticipated the Reserve Bank of Australia electing to leave the cash rate unchanged at 4.35% per annum. This is the six time in a row where the reserve bank of Australia has not moved on the cash rate that is the cash rate has remained unchanged

Ongoing concerns about inflation and a mixed economic outlook meant the bank continued with its stance of no interest-rate changes. However, mortgage holders continue to experience stress and concerns around increasing repayments as the interest-rate rises of the past continue to bite an impact household savings.

The Reserve observed a gradual easing of inflation. However, the key term  is gradual. Inflation has been easing, slower than expected, and continues to persist in the economy

In line with the RBA’s previous statements, unless they feel inflation can be controlled and inflationary pressures removed from the economy they are not expected to reduce interest-rates.

“The Board expects that it will be some time yet before inflation is sustainably in the target range. While recent data have been mixed, they have reinforced the need to remain vigilant to upside risks to inflation,” the RBA has said.

Mortgage Broker reaction

The interest-rate pause gives mortgage holders some certainty with their budget, but the impact of previous rises has seen less disposable income available and has impacted economic activity and lead to mortgage stress according to mortgage broker What If We Finance.

March 2024, saw approximately $15 billion worth of residential of home. Loans fallen behind on their mortgage is between 30 and 89 days.

Equifax has advised that mortgage arrears are up 15% compared to last year for 30 to 89 days and 17% for 90+ days. This is a concern because it is a sign of mortgage stress and the adverse impact that interest-rate have on mortgage holders.

Mortgage broker what If We Finance believes hi home loan repayments when combined with school fees credit cards and other items are making the cost of living very tough and this stress is starting to manifest itself in the numbers, Equifax report.

What do mortgage brokers predict re interest rates?

What If We Finance believes interest-rate will go down, but the timing is ambiguous. The reason is mixed economic signals in Geo. Political factors mean the RBA is waiting on hold in to see what transpires another rate rise would devastate a lot of mortgage holders.

Predictions of interest-rate cards may have changed in late 2024 or maybe even 2025 is now looking more realistic, but things can change quite quickly given the economic uncertainty. Ultimately, the key indicator of an interest rate movements will be inflation.

What If We Finance can help

Mortgage broker Melbourne, What If We Finance has been helping customers navigate, interest-rate cycles and economic uncertainty since 2008 .

As Melbourne’s best mortgage broker and with access to over 2,000 home  loan products and 50 lenders we can help you refinance or buy your home with unbeatable deals and service.

Contact us today to find out more

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