Rate cut 'will lead to increase in home loan applications'

Friday 04 November 2011

Article by Mozo

The 0.25 per cent cut to the cash rate announced by the Reserve Bank of Australia (RBA) on Tuesday (November 1st) will lead to an increase in the number of home loan applications, an expert has asserted.

Home loan applications 'to increase following the rate cut'

Stephen Roberts, Nomura chief economist, told the Australian Associated Press that there has already been an upturn over the last few months.

"This pattern with interest rates is only going to accelerate it as we go ahead," he asserted.

"We seem to have gone through the base as far as housing credit is concerned and that will pick up in the next few months," Mr Roberts added.

All of the big four banks have now announced that they will cut interest rates following the the RBA rate cut.

Earlier this year, the Mortgage Choice Saving & Spending Insights Survey indicated that should the RBA decide to cut rates, there would be an increase in the number of Aussies opting for refinancing.

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