Aussies feeling less confident about their finances

Economists have admitted that a new study aimed at gauging the financial confidence of the Australian public has thrown up some surprising results.

The Westpac/Melbourne Institute Consumer Sentiment Index – which scrutinises people's monetary situations – has fallen from 96.1 points in March to 94.5 in April, the Australian Associated Press reports.

Chief economist at Westpac Bill Evans said this was the worst reading for eight months and he was not expecting things to be so bad.

"This result comes as a mild surprise," he commented.

He suggested that home loan customers are probably concerned about the Reserve Bank of Australia's (RBA) reluctance to lower interest rates this year and this has been reflected in the latest index.

Despite this, he believes the economy is in better shape than it was in August 2011 and the RBA has hinted that the cash rate could be cut in the next few months, which are both great reasons to be optimistic.

Have a question about home loans? Ask the money gurus at Mozo Answers.ADNFCR-1761-ID-801337419-ADNFCR