HIA says no move is right move

The Housing Industry Association (HIA) has welcomed the Reserve Bank of Australia’s (RBA’s) decision to leave interest rates at three per cent.

In a statement following its monthly meeting, the Bank’s governor Glenn Stevens said that the home loan market was continuing to show signs of improvement, while house prices were continuing to mend, both factors in encouraging the RBA to keep rates on hold.

Responding, Ron Silberberg, managing director of HIA, said: "It makes sense at this time for the Reserve Bank to keep its powder dry."

He added that interest rates on home loans are not a barrier and insisted that more important factors were whether there was healthy competition in the mortgage market and how easy it was for potential borrowers to access credit.

The group is getting reports that many house builders are having to cancel new-build projects because of difficulty in getting credit from non-bank lenders.

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