Our Backyard – Aireys Inlet

Welcome to Aireys Inlet

Again this week the Reserve Bank decided to cut official interest rates to a new record low of 1.5% following the recent cut in May. Debate rages however as many of the banks have only passed on a fraction of the cut to their customers.

Housing markets continue to benefit from lower mortgage rates with robust buyer activity translating into recent solid price growth in most capital cities.

For those of us who can remember the rates in the late 1980s this seems hard to fathom. Of course as the decline in rates has been a steady one over the last twenty-odd years, it has been less noticeable.

From around June 1989 to March 1990, the standard variable home loan interest rate was 17%. Can you imagine how that would translate for many of us today if rates were again at 17%?

Thankfully that won’t be happening in the near future and in fact there is likely to be another reduction in the short term.

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James Worssam

0418 585 815

james@greatoceanroadrealestate.com.au

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