Benchmark Rates decreasing
One of those headlines that probably doesn’t mean too much when you first hear it but this is another good sign for lending.
Whenever a lender is assessing a home loan application, they use a benchmark interest rate that is usually above the actual interest rate in use at the time.
They do this to allow for future interest rate increasing but the significance is that the higher the benchmark rate is, the less that someone is able to borrow for a home loan.
The good news is that we have seen at least one lender has just announced a reduction in their benchmark rate which is another sign that interest rates may be stabilizing.
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