There is a lot of speculation on which way interest rates will trend over the next 12 months. Some analysts are predicting a rate reduction of 0.25% in the near future while others believe rates will remain unchanged or increase. With so much volatility in the share market and fears of economic unrest in overseas markets, it is anyone’s guess on where rates will head.

Hemisphere is delighted to have won a silver award for our Line of Credit Home Loan from Your Money Magazine.

At it's meeting today, the RBA decided to leave interest rates unchanged at 4.75%.

 http://www.rba.gov.au/media-releases/2011/mr-11-15.html

According to the MFAA, the rising cost of living is putting a dampener on the propoerty market...

http://www.brokernews.com.au/news/newsletter/109005

A new survey of 1,000 homeowners conducted by the group has shown that exit fees are not a significant factor in consumers' choice of home loans. The research indicated consumers are most concerned with interest rates, with 50.2% saying rates were the most important factor in their choice of product. Fees and charges were ranked second by respondents, with 15.5% tipping them as a factor in their decision.

However, exit fees ranked last in the survey, with only 1.7% of respondents claiming they were a concern. The existence of DEFs fell behind LVR and brand in its importance to consumers.

RBA leaves cash rate unchanged at 4.75% - see full statement:

http://www.rba.gov.au/media-releases/2011/mr-11-09.html

RATINGS agency Moody's last night made good on its warning over downgrading the credit ratings of Australia's four main banks...

Read more: http://www.smh.com.au/business/big-four-in-ratings-downgrade-20110518-1et39.html#ixzz1MkLy6pH6

At its meeting yesterday the RBA decided to leave the cash rate unchanged at 4.75%. Click the link below for the full story.

http://www.rba.gov.au/media-releases/2011/mr-11-07.html

The majority of brokers believe an interest rate hike would have little to no impact on potential home buyers.

According to Adviser Magazines latest sentiment survey, 39.5% of brokers believe an additional rate hike right now would have no impact on home loan demand – up 23.7% from this time last quarter...(click for full story)

http://www.theadviser.com.au/breaking-news/5247-rate-rise-no-impact-on-borrowers

What do you think?

More breathing room for borrowers as the Resrve Bank of Asutralia holds interest rates at 4.75%. (Click below for full statement)

http://www.rba.gov.au/media-releases/2011/mr-11-06.html