The Reserve Bank has opted to keep interest rates steady at its board meeting today.
It was a widely expected move and will give mortgage holders another welcome breather from the six rate hikes they have endured since September last year.
“It looks as though the earlier interest rate hikes are already biting,” says Domain.com.au blogger Carolyn Boyd. “Auction clearance rates are down and house price growth is cooling. Real estate agents are also reporting there are less people looking to buy.”
Each 0.25 per cent interest rate rise adds another $50 to the monthly cost of an average mortgage. Australian mortgage holders are already paying about $300 more per month in repayments than they were in September last year.
Mortgage holders on variable interest rates are currently being charged about 7.4 per cent by their lenders.