Home Loans & Mortgages

Australia’s strong economy, lower unemployment rates, a higher $AU dollar and raising housing and rental values, we should expect higher mortgage interest rates in 2010.

The U.S. Census Bureau and the Department of Housing and Urban Development announced that sales of new, single-family homes in March jumped 2.6 percent compared to February’s numbers. Bob Walters, chief economist of Quicken Loans, says that a combination of unsold homes, currently at a 7.8-month supply, and favorable financing are driving new home purchases. [...]

There is a lot of speculation on Australia’s home loan interest rates, both here and in the US, that Australia’s wonderfully low unemployment rates and growing business investment will mean RBA will have to lift its interest rates, and how that will affect the housing market.

Australian homeowners blessed with a Goldilocks economy: not too hot for rates to rise, and not too cold to cause unemployment to be a concern.
Over time the direction for mortgage interest rates seems higher, as low unemployment may drive inflation higher in 2011 to 2012.

Is Australia’s tight job market a cause for the RBA to hike interest rates? There is a lot of speculation, both here and in the US, that Australia’s wonderfully low unemployment rates and growing business investment will mean RBA will have to lift interest rates. They say that our unemployment rate has fallen to 5.1%. [...]