Interest rate decision 'may boost building sector'

Aussies considering taking out a new home loan in the near future may be encouraged by the recent announcement by the Reserve Bank of Australia that interest rates will remain at their current level.

Peter Jones, chief economist at Master Builders Australia, observed that stability in the cash rate is likely to contribute to an "upswing in residential building activity".

He observed that the construction sector is likely to benefit from improved sentiment and confidence among householders.

"The interest rate-sensitive residential building industry is relying on an extended pause in Reserve Bank monetary policy to shore up consumer confidence and encourage an upswing," Mr Jones stated.

Last month, Resi Mortgage Corporation chief executive officer Lisa Montgomery told Property Observer that consumers should not focus too much on the advertised interest rates.

She observed that it is also important to consider the guidance and support that lenders will offer them.

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