Rate cuts positively impact first home buyers

Wednesday, 4 Jul 2012

Recent cash rate cuts from the Reserve Bank of Australia (RBA) have had a positive impact on first home buyer sentiment, Ray White has explained.

The country's largest real estate company explained that there is currently a battle underway between economists and the needs of the home buying population.

Brian White from the group said: "It showed once again the sensitivity of home purchasers and how immediately and quickly it can create a change in their confidence and psychology.

"So much research shows the importance of this to the sense of wellbeing to the country's citizens."

He indicated that the RBA should not take this for granted and urged it to consider maintaining this positivity among first-time buyers.

The RBA decided yesterday (July 3) to keep the cash rate at 3.5 per cent following cuts over the past two months of 0.25 and 0.5 per cent.

Governor Glenn Stevens revealed that the Australian economy grew during the first part of 2012 at a pace stronger than was initially anticipated.

He also noted that there had been no change to the RBA's outlook for inflation and that it seems to be in line with the target.