Rate cuts stir interest in home loans, study shows

The Reserve Bank of Australia's (RBA) recent interest rate cuts appear to have had an immediate impact on the nation's home loan industry.

According to research by mortgage broker Loan Market, 62 per cent of survey respondents said they were now more inclined to buy a property.

The firm discovered that out of the 785 people who took part, 42 per cent confirmed their interest had risen slightly, while a further 20 per cent indicated they were ready to buy now.

Less than one in four claimed that the RBA's decision to lower the national cash rate to 3.25 per cent made no difference to them, while 15 per cent said they would wait for more rate reductions.

They may not have to hang on for too long, with many experts suggesting the RBA could slash interest rates again in November and in early 2013, as there are still huge concerns about the state of the Australian economy.

Loan Market corporate spokesperson Paul Smith said that a lot of competition has opened up in the mortgage sector, despite the fact not every bank has passed the RBA's cuts on in full.

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