The Reserve Bank of Australia (RBA) has lowered the official cash rate by 25 basis points, marking the second rate cut of 2025. Now sitting at 3.85%, this decision was driven by falling inflation and easing economic growth.
Australian Broker reported on the relief to mortgage holders and investors. “Even a small cut could shave thousands off annual repayments — a timely boost as households continue to grapple with soaring living costs.”
Since the last cut in February, property prices have surged, according to data from PropTrack. Inner Melbourne leads with 3.6% growth in house prices and 5.9% in unit prices, the fastest in Australia. Melbourne’s affordability has subsequently drawn buyers, with 40% of Victorians believing it’s a good time to buy.
Darwin is attracting investors with high rental yields and has rebounded with a 3.3% house price increase, while the Gold Coast saw nearly 3% growth. Queensland, particularly Townsville, leads annual growth, with house prices up 22%.
If you’d like to reevaluate your mortgage, why not reach out to a broker for a complimentary home loan health check? The RBA’s next meeting will be announced on Tuesday, July 8.
