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.

Christmas concert to showcase local talent

WANTING TO HELP: Helping to rasie money for iSEE CARE by holding a concert from left, Lene Amato, Janine Evans, Scott Hall and Lauren Mackay.

Free community carols event sure to draw a big crowd.

WATCH: Man on the run after knife point robbery

Ipswich detectives investigating the armed robbery of a liquor outlet located on Commercial Drive, Springfield have released an image of a man who may be able to assist with their investigations.

Police release vision of armed robbery at liquor outlet

Gold Coast smashed by severe lightning storm

Sharyn Lee Kimpton‎ posted this cracker photo of lighting at Surfers Paradise on the Gold Coast on Tuesday morning via Higgins Storm Chasing / Facebook.

Pictures have been flooding in on social media of the lightning bolts

Local Partners

Hailey Baldwin: I don't understand Taylor Swift's squad

Hailey Baldwin has taken a quick stab at Taylor Swift and co.

Taylor Lautner 'spotted smooching co-star'

Taylor Lautner has been romantically linked to Billie Lourd

David Beckham's tattoos come to life for UNICEF campaign

David Beckham has called for an end to violence against children

Pop star Liam Payne's Facebook hacked with porn

"Things that can happen to you when you don't have sex."

Tim Roth was abused by his grandfather

Tim Roth was abused by his grandfather during his childhood.

Leo designs shocker tattoo for Tom Hardy after lost bet

Leonardo DiCaprio has designed a new tattoo for Tom Hardy

Residents wary of showing sand mine hand early

Public meeting for the proposed sand mine at Maroochydore last week.

Coast MP calls on Minister to stop KRA proposal with stroke of a pen

INSIDE STORY: The highlights of your $150 million CBD

GRAND PLAN: The highlights of the Ipswich CBD redevelopment and where they will be located.

Work on city heart's radical transformation to begin next year

Developer's grand new multi-million dollar estate

NEW ESTATE: This is the only plan revealed by the property developer's new Billabongs Estate in Agnes Water.

DEVELOPER given the go ahead for a massive estate with 149 homes.

Couple's desperate $550K price drop to sell Gladstone home

Brian Headley and Kirstene Staib are selling their Kin Kora mansion for $750,000.

TELL tale sign of Gladstone's property market.

Banks reclaim Gladstone homes as job losses bite

LONG FALL: Property experts Heron Todd say, based on key market indicators, Gladstone is still travelling to the bottom of the market, with property prices set to get cheaper.

Property valuers say Gladstone housing market hasn't hit the bottom

Ready to SELL your property?

Post Your Ad Here!