Interest rates unchanged
Category General News
Interest rates unchanged
Betterbond - 21 September 2017
The repo rate will remain at 6,75% and the prime rate and standard home loan rates at 10,25% for at least another two months, and it is disappointing to those who believed there was room – and a need - for a further rate
decrease after the 25 basis point drop in July to give consumer confidence and the economy a much-needed boost.
The Federal Reserve has also decided to keep US interest rates unchanged for now, and this should help to stabilise and possibly strengthen the Rand, although inflation could still start to rise again on the back of increased global oil
prices.
We do not believe that prospective home buyers should wait for another rate cut now to finalise their purchase plans. Home prices are rising very slowly at the moment but always start increasing as soon as rates start dropping, so the best
move would be to buy now and secure your home at the best possible price.
“This will give you a double benefit when rates do start to drop because you will not only have a lower monthly home loan
repayment to make, but a lower home loan balance to pay off.”
Author: Welgedacht Properties
