What is the latest news about the official cash rate?

In a press release from the Reserve Bank of Australia (RBA) on May 3, Governor Glenn Stevens reported that the official cash rate (OCR) has been cut for the first time in a year.

The latest cash rate decision means that another record-low is upon us - 1.75 per cent. The previous record was 2 per cent, which was the figure in place from 12 months ago. What does this mean for anyone looking for new home building options? For a start, the OCR is the rate at which lenders borrow money from the RBA in order to provide loans to customers.

Over the past year, banks haven't passed on these savings to clients, although after this most recent drop, three of the big four banks have already stated they will be lowering interest rates, according to a Real Estate Institute of Victoria media release.

What will a lower OCR mean for anyone wanting to build their own home?

With banks already showing they will be improving the interest rates for their customers, home loans will be more accessible to many Perth families. With a better landscape for mortgages, more people will be encouraged to speak with their finance broker to see what options they have available to get themselves into the home they've dreamt about for years.

"The latest Australian Bureau of Statistics data confirms that price pressures in the economy are very well contained," commented senior economist of the Housing Industry Association, Shane Garrett.

"Against this backdrop, lower rates will provide real benefits to households and businesses right around Australia. [The] rate cut represents a timely and measured initiative."

Here at apg Homes, we pride ourselves on the massive range of home designs that we have available. They're also perfectly balanced for first home buyers because of how affordable they are, and if you act in the next few months before a boom happens on the west coast, you'll be able to snap up a beautiful bit of land for a great price.

What does the change in the cash rate mean for the economy?

Building your own home aside, the RBA's decision to change the cash rate means that the Australian economy is needing a bit of help. Increasing pressures can be offset by a lower OCR, and the recent economic position in the country pushed the RBA to make the decision.

It could benefit you greatly - get in touch with the team here at apg homes to see what we have in store for you while the cash rate remains at this record-low!