Resources: Market Update

RBA TOLD TO BE CAREFUL.

Posted 26/06/09

The International Monetary Fund (IMF) has claimed that the Reserve Bank should take extra caution if it decides to increase the cash rate.

In a document it released yesterday it emphasised that the RBA have the capacity to lower the rates and kick start the economy if they needed.  They praised the government for the stimulus policy however did warn against raising rates too quickly.

"In view of the still fragile state of the global economy, the RBA should be more cautious than normal in tightening. The return of the cash rate to neutral can wait until there are clear signs that a sustainable recovery is underway."

They also added that the downturn in the Australia economy has been a lot milder than in other countries.


FIXED RATES MOVING.

Posted 03/06/09

Westpac has wasted no time in pushing their rates up following the CBA's recent decision. 

One year fixed rate loans have moved up from 5.39% to 5.49%, while three and four year loans have been raised 0.5% to 7.19%; five-year loans are up to 6.59%.

NAB's two to five year fixed rates have increased from between 0.15% to 0.4%.

St George's three year fixed rate is the lowest of the majors at 5.99 per cent and their five year rate has increased to 7.14%.

ANZ has lifted its fixed rates for three year to ten year loans by between 0.15% and 0.35%.


CBA LIFTS VARIABLE RATES.

Posted 03/06/09

The CBA will raise interest rates on its standard variable home loan to 5.74% or by 0.1% to offset higher funding costs.

Since the RBA commenced cutting cash rates in September 2008, the CBA is the first major bank to lift interest rates on mortgages.

Michael Cant head of CBA retail products said "Our rate is still the lowest of all major banks,"  

CBA is Australia's largest lender with The Australian Prudential Regulation Authority (APRA) putting their market share of the mortgage market at 25 per cent to April 30.

The treasurer Mr. Swan said "The decision by the Commonwealth Bank gets in the way of interest rate relief measures to stimulate our economy and to support jobs."

He also went onto say that this has raised fears other banks will follow which will hinder the economic recovery.


18,000 FHB GRANTS TAKEN OUT IN APRIL.

Posted 03/06/09

New figures just out for April show that a record number of First Home Buyers have entered the market.

Tanya Plibersek the federal minister for housing mentioned yesterday that "The First Home Owners Boost, combined with low interest rates has brought first home buyers into the market in record numbers,"

First home buyers reportedly took out more than 18,000 grants in April bringing the total to 78,000 since October.

NSW First Home Buyers have taken out the most with just over 27,000 with Victorian and Queensland First Home Buyers with similar numbers both around 17,000.

RATES ON HOLD FOR NOW.

Posted 03/06/09

The Reserve Bank has decided to keep interest rates steady for the second month in a row.

RBA Governor Glenn Stevens said in a statement, ''Evidence has continued to emerge that the global economy is stabilising, after a sharp contraction during the December and March quarters "

He later added "The considerable economic policy stimulus in train in most countries is helping to contain the downturn, and should support an eventual recovery,''

Some economists now believe that the series of rate cuts we have had between last September and April are over; some are actually penciling in a rate rise before the year is out.

The rate still remains at 3% which is a 49-year low. 


LENDERS OF THE YEAR.

Posted 03/06/09

This years Money Magazine's Consumer Finance Awards winners are;

St George the 2009 Bank Home Lender of the Year & RAMS Home Loans the 2009 Non-Bank Lender of the Year.

Andrew Moore, GM of St George retail banking distribution was excited by the win and said  "We pride ourselves on having a range of home loans that is not only competitive and innovative but also expansive," he said.

This is the first time in 10 years that someone has edged out the ANZ.

RAMS CEO, Melos Sulicich, said it was "an honour which clearly demonstrates we have maintained our strong position as a valuable alternative to the major banks in the Australian home lending market."