The Australian dollar has benefited from increased expectations of a Reserve Bank cut ... Plenty of confidence left in Melbourne's market...
CBA rate rise boosts Aussie dollar​
The Australian dollar has benefited from increased expectations of a Reserve Bank cut in November, following the Commonwealth Bank's rate hike yesterday.
At 0630 AEDT on Friday, the currency was trading at 72.11 US cents, up from 71.96 cents on Thursday.
Commonwealth Bank raised its mortgage rates by 15 basis points, 5 basis points less than Westpac's 20 basis point hike last week, according to The Australian.
Analysts expect the remaining two majors to make similar changes, with ANZ and National Australia Bank possibly upping rates today.
CBA’s standard variable rate will be 5.6% for owner occupiers from November 20 and 5.87% for investor loans.
Effective on the same date, Westpac’s variable loans will rise to 5.69% for owner occupiers and 5.95% for investors.
Along with Westpac, CBA's reason for the rise was in light of the regulator’s recent decision to increase the major banks’ mortgage “risk weights” from July next year, in line with recommendations by the financial system inquiry.
“We recently raised $5.1bn to strengthen our capital position in line with new regulatory requirements implemented in response to the financial system inquiry. We have now reviewed our home loan pricing in light of these changes,” said CBA head of retail banking Matt Comyn.
“Any decision to change interest rates is carefully considered.
“The cost of the new capital required to make the Australian banking system more secure needs to balance the interests of our customers, as well as the nearly 800,000 households who are direct shareholders and the millions more who are invested through their superannuation funds.”
CBA and Westpac have both left their fixed rate home loans and business rates unchanged.
Plenty of confidence left in Melbourne's market
While figures released this week show there has been some slowing in the rate of capital growth in Melbourne, Victoria’s peak real estate body still has a positive outlook for the city’s future.
Over the September quarter, Melbourne’s median house price pushed past $700,000 for the first time and Real Estate Institute of Victoria (REIV) chief executive officer Enzo Raimondo said that has invigorated the market.
"Melbourne’s buoyant property market has experienced one of the strongest starts to the traditional spring selling season on record,” Raimodo said.
“We’ve seen super Saturday auction weekends recorded throughout August and September,” he said.
While auction numbers have jumped, Raimondo said buyers haven’t been spooked by the number of properties hitting the market.
“In September alone, there were more than 4400 auctions, and many more are scheduled in October,” he said.
“This level of growth indicates a high level of buyer confidence - with sellers benefitting from high auction numbers, solid clearance rates and low interest rates.”
Melbourne is likely to benefit from that level of confidence, with Raimondo predicting further growth in the coming months.
“The market is currently on an upwards trajectory. The September quarter was extremely strong and that trend is continuing into the December quarter.”
According to the REIV, Melbourne’s middle and outer suburbs are the city’s main growth drivers, with prices in those areas up 4.4% and 5.1% respectively over the quarter.
According to Raimondo, this reflects the fact that more and more buyers are looking for affordable, larger homes.
The Australian dollar has benefited from increased expectations of a Reserve Bank cut in November, following the Commonwealth Bank's rate hike yesterday.
At 0630 AEDT on Friday, the currency was trading at 72.11 US cents, up from 71.96 cents on Thursday.
Commonwealth Bank raised its mortgage rates by 15 basis points, 5 basis points less than Westpac's 20 basis point hike last week, according to The Australian.
Analysts expect the remaining two majors to make similar changes, with ANZ and National Australia Bank possibly upping rates today.
CBA’s standard variable rate will be 5.6% for owner occupiers from November 20 and 5.87% for investor loans.
Effective on the same date, Westpac’s variable loans will rise to 5.69% for owner occupiers and 5.95% for investors.
Along with Westpac, CBA's reason for the rise was in light of the regulator’s recent decision to increase the major banks’ mortgage “risk weights” from July next year, in line with recommendations by the financial system inquiry.
“We recently raised $5.1bn to strengthen our capital position in line with new regulatory requirements implemented in response to the financial system inquiry. We have now reviewed our home loan pricing in light of these changes,” said CBA head of retail banking Matt Comyn.
“Any decision to change interest rates is carefully considered.
“The cost of the new capital required to make the Australian banking system more secure needs to balance the interests of our customers, as well as the nearly 800,000 households who are direct shareholders and the millions more who are invested through their superannuation funds.”
CBA and Westpac have both left their fixed rate home loans and business rates unchanged.
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Plenty of confidence left in Melbourne's market
While figures released this week show there has been some slowing in the rate of capital growth in Melbourne, Victoria’s peak real estate body still has a positive outlook for the city’s future.
Over the September quarter, Melbourne’s median house price pushed past $700,000 for the first time and Real Estate Institute of Victoria (REIV) chief executive officer Enzo Raimondo said that has invigorated the market.
"Melbourne’s buoyant property market has experienced one of the strongest starts to the traditional spring selling season on record,” Raimodo said.
“We’ve seen super Saturday auction weekends recorded throughout August and September,” he said.
While auction numbers have jumped, Raimondo said buyers haven’t been spooked by the number of properties hitting the market.
“In September alone, there were more than 4400 auctions, and many more are scheduled in October,” he said.
“This level of growth indicates a high level of buyer confidence - with sellers benefitting from high auction numbers, solid clearance rates and low interest rates.”
Melbourne is likely to benefit from that level of confidence, with Raimondo predicting further growth in the coming months.
“The market is currently on an upwards trajectory. The September quarter was extremely strong and that trend is continuing into the December quarter.”
According to the REIV, Melbourne’s middle and outer suburbs are the city’s main growth drivers, with prices in those areas up 4.4% and 5.1% respectively over the quarter.
According to Raimondo, this reflects the fact that more and more buyers are looking for affordable, larger homes.
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