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ISCOVER
Staff Reporter
Most Australian homeowners expect the Reserve Bank of Australia (RBA) to leave interest rates on hold for a fourth consecutive month, a national survey has found.
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The poll carried out by Loan Market asked home owners what action they expect the RBA to take at its April board meeting.
According to the results, 57 per cent of respondents anticipate the current cash rate to be maintained at three per cent.
Loan Market spokesman Paul Smith said 40 per cent of the 382 online respondents tipped the RBA to lower the official rate by 25 basis point and only a handful of respondents thought the RBA would lower rates by more than 50 basis points.
The poll also found that homeowners are not expecting rates to rise.
“Improvements in the economy are aiding in the return of confidence to the property and finance markets. With improvements in housing affordability and historically low interest rates, the real estate industry is really starting to gain some momentum,” Mr Smith said.
Mr Smith said that while it appears that home owners did not expect a rate cut, they should continue to see strong competition between lenders.
“Even with minimal rate movement, lenders are competing with each other on discounting, fees and product features.”
Mr Smith said the brokerage was also anticipating a drop in variable interest rates as the cost of funding eases.
