The RBA has surprised today in its rate announcement.

The Reserve Bank bucked expectations in cutting the official cash rate 25bps to 2.75%. An AAP survey of 13 economists found none expected the RBA to move on rates today, but RP Data research director Tim Lawless said the decision may have been partly due to weakness in home building.
 
"What may have been most concerning to the RBA is the pace of dwelling construction and consumer appetite for newly constructed homes. Dwelling approvals and commencements remains weak and although new home sales have improved, according to the HIA, the number sold remains historically low.  If we are to see the construction sector pick up where the mining boom is leaving off, lower interest rates may be the catalyst that is required," Lawless said.
 
This story first appeard on our sister website: www.brokernews.com.au

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now