MoneyQuest’s July 2023 Cash Rate Update – Talk About a Trifecta!

The new financial year is here, but the question is, has the market turned a new corner?

Let’s look at some facts:

1. The RBA Board has just announced that the July 2023 cash rate will be remaining on hold at 4.1%, providing some much-needed relief for mortgage holders.

2. Yesterday, CoreLogic’s Home Value Index (HVI) revealed that Australian housing values have increased for the 4th month in a row, rising 1.1% in June. This is great news for homeowners because as the value of your home rises, so too does your equity. The more home equity you have, the lower your loan-to-value ratio (LVR) becomes. A lower LVR represents less risk to lenders, which can make it easier for you to refinance and explore your options.

This HVI data also signals to first home buyers that the housing market has already bottomed out, and that dwelling prices are on the rise once again.

3. The Australian Bureau of Statistics (ABS) reported yesterday that the value of new housing loan commitments rose 4.8% in May, compared with the previous month. This is encouraging for the mortgage broking industry, indicating an increase in confidence amongst borrowers.

Talk about a trifecta!

However, whilst it’s important to embrace these little wins, the fact remains that the cash rate is still the highest it’s been for 11 years, at 4.1%.

So, if you have a mortgage and you’re worried about your loan repayments, or want to know more about your options, please reach out to our team.

Repricing or refinancing might be an option to help save you some money, or if you’re experiencing significant financial hardship, our brokers can let you know who to contact for additional assistance.

And if you’re a hopeful first home buyer considering taking the leap, be mindful that house prices are on the rise and likely to keep climbing. So, there is no time like the present to contact a MoneyQuest mortgage broker about your home loan options.

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