Welcome to Mortgage Matrix’s May 2025 Market Update

📉 RBA Cuts Cash Rate to 3.85%

In its third meeting of 2025, the RBA reduced the official cash rate by 0.25 percentage points, bringing it down to 3.85%. This decision follows a decline in inflation, with the Consumer Price Index (CPI) rising 2.4% over the 12 months to March, and underlying inflation dropping to 2.9%—the lowest since December 2021.

RBA Governor Michele Bullock commented, “We’ve made good progress on bringing inflation down and keeping unemployment low.” Economists anticipate further rate cuts this year, with some predicting up to five reductions in total. Lenders have already begun adjusting mortgage interest rates in response, making it an opportune time to review your home loan options.

🏡 Property Prices Continue to Rise

Despite global economic uncertainties, national property values edged up by 0.3% in April, reaching new record highs. All capital cities experienced growth, with Darwin leading at 1.1%, and Sydney and Melbourne both seeing increases of 0.2%. Regional markets continued to outperform capital cities, a trend ongoing since October last year.

Cotality (formerly CoreLogic) research director Tim Lawless noted, “The rate cut in February supported an upwards inflection in housing market conditions, but the positive influence from lower rates seems to be losing some potency.”

🧊 Winter: A Strategic Time to Buy

Winter often brings reduced competition among buyers and more motivated sellers, creating favorable conditions for property purchases. With interest rates decreasing and property values on the rise, now is an excellent time to consider entering the market or expanding your investment portfolio.

💬 Let’s Discuss Your Next Move

At Mortgage Matrix, we’re here to help you navigate the evolving property landscape. Whether you're a first-time buyer, looking to refinance, or aiming to invest, our team is ready to assist you in achieving your property goals.

Contact us today to explore your options and take advantage of the current market opportunities.

Stay up to date with the housing market and review your home loan regularly.