Base rate 'could be at 3.75% by March'
As a raft of new low-interest home loans enter the market, experts are predicting that the base rate could fall even further next year.
Indeed, the Courier Mail reports that by March, rates could have fallen to 3.75 per cent, down an additional 150 basis points on today’s rate.
Such news may well be welcomed by first-home buyers looking to get on the ladder while deals are cheap.
However, while the outlook for new buyers may be good, NAB money expert Alan Oster told the paper that things aren’t looking at all rosy for the wider economy.
“All of the key indicators seem to be going clunk in Japan and China, which is making me even more nervous,” he lamented.
Reports from the Reserve Bank suggest that it is committed to staying ahead of the downturn, with governor Glenn Stevens recently indicating that it may even hold an emergency meeting to slash rates again in January.
Such a scenario could be a welcome gift to first-home buyers as they enter the new year.