A July mortgage rate cut is widely expected, with nearly 88% of experts and economists surveyed by Finder predicting the Reserve Bank of Australia (RBA) will lower the cash rate to 3.60%.
If banks pass on the cut, homeowners with a \$500,000 mortgage could save approximately \$1,613 annually, while those with a \$1 million mortgage may save around \$269 per month, or \$3,226 per year.
Graham Cooke, Head of Consumer Research at Finder, said the rate cut would boost confidence among mortgage holders. He noted that while two rate cuts have already occurred, homeowners are eager for more, especially as inflation continues to decline. He expects banks to face strong pressure to pass on the full cut in July.
Matthew Peter from investment firm QIC echoed this sentiment, saying a July rate cut is “in the bag” due to falling underlying inflation, weak consumer spending, and market expectations.
Most experts surveyed also anticipate another rate cut in August, with just over half expecting a further reduction in November.
Please note, the information provided is general and not personal financial advice. Individuals should consider their personal circumstances before making financial decisions.
