It will be the lowest interest rate this country has seen in over 48 years. (Rates were as low as 2.9% in 1960)
Interest rates have already dropped from 7.25% to 5.25% in 3 months - so such a massive drop should put some spark back into the property market.
Consider these numbers:
A Home Loan of $250,000 in June 2008 at roughly 8.8% was costing the $476 week.
In 2009 that same home loan could be down as low as 5% and would now cost $337 week.
That is a savings of $139 week.
Affordability is going to improve dramatically for people. And that's a good thing.
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