HomeMate.com.au

Why interest rates at these levels are good news The RBA had a lot to say at its board meeting that needs to be digested. It contains the reasons for its decision, and the good news and bad news on interest rates. At the end of the day, interest rates at normal rates, as they [...]

RBA ask home buyers & homeowners to carry the “interest rate” can for the economy again. Australian home buyers and mortgagor homeowners might get punished By the Reserve Bank of Australia with higher mortgage repayments for the mining boom, the Queensland floods and Cyclone Yasi. Real economy is going backwards This grim analysis is based [...]

Home sales fell last year to below those recorded at the height of the global financial crisis in 2008. That was when the rest of the World had a major correction in house prices and Australia missed that bath.

Hence the :dead cat bounce” analogy.
Whilst we have seen several raises in mortgage interest rates, they are hardly a concern at average mortgage rates we have and full employment, so my guess is that house prices have got ahead of themselves and until they soften further we are unlikely to see an upswing in home buyers any time soon.

This home loan product [Uhomeloan] is aimed directly at it main two Competitors, Westpac and CBA, because it is a mortgage refinancing only product.
Another giveaway is that the new home loans attract no fees on the standard variable loan.

The Labor Party has been the driver in Banking Reform in Australia.

In fact it was always the Australian Labor Party who have reformed the banking system and opened up the mortgage industry to competition which saw the banks reduce their interest rates by over 2%. That is a lot of monthly savings for every Australian Homeowner with a mortgage.

Late last year, Mr Swan announced a bank reform package, including banning price signaling between banks and scrapping bank exit fees, in a bid to lift competition.

The housing market is going nowhere, and this is affecting new home sales as people shelve their plans to build a new home, that was to be financed from the sale of their existing home.
It looks like this situation will continue as home prices are under pressure to fall further in 2011.