Yesterday the RBA decided not to lower interest rates.
I'm getting a bit annoyed with some articles acting like this is terrible news.
For example: http://www.news.com.au/business/money/story/0,28323,25132946-5016110,00.html, which in the first paragraph says:
"OH, so close. The Reserve Bank denied homeowners a rare moment of good news amid all the economic doom and gloom today, leaving the official interest rate steady at 3.25 per cent."
I don't mean to sound callous, because I know in the current economy, with job losses and threats of more job losses, some people are struggling. But interest rates have dropped 4 percent in 1 year! I looked at the historical cash rate on the Reserve Bank site. The figures go back to January 1990 - so over 19 years ago. Interest rates are lower than they have ever been in that 19 years.
I was a child in the late 80s/early 90s recession, but I remember my parents struggling with a 17% mortgage. 17%!
I'm going to be blunt - if you can't afford a mortgage on current interest rates, you shouldn't have a mortgage.
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I already have a mortgage. I was getting used to the 1% drops! It was such an andrenalin rush the first time it was announced. They are predicting rates have further to drop, I hope so, it means I can pay it off quicker!
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