Builders call for more rate cuts
Home builders have called on the government to slash home loan rates to encourage Aussies to buy more houses.
Peter Jones, the chief economist at Master Builders Australia, said that last week’s interest rate cut was a step in the right direction, but a further reduction to increase the number of low-interest home loans available to first-home buyers was a needed.
“It will take time to turn the housing market around. Tight financial conditions and weak consumer sentiment have not evaporated overnight as a result of the rate cut,” he explained.
His comments followed new figures from the Australian Bank of Statistics which showed that the number of people taking on home loans fell for the sixth straight month during July.
However, looking at August, the National Australia Bank has claimed that it seems that business optimism is starting to pick up again, with retail sales seeing some growth.
Money expert at the bank Jeff Oughton said consumers were starting to show some optimism about the health of the economy.