A new survey has revealed that homeowners expect the Reserve Bank of Australia to lower interest rates towards the end of the year.
A poll conducted by Loan Market which asked "Do you think the RBA will lower interest rates again in 2012?" found that 46 per cent of the participants expected there to be another cut to interest rates this year.
The study indicates that there is a substantial amount of first home buyers who may see further interest rate cuts as the final push to getting onto the property ladder.
Loan Market spokesman Paul Smith said previous interest cuts have created a reduction in the cash rate in May and June and it has been helpful for some homebuyers but he added that "a cloud remained over the housing and retail sectors".
"Consumers would clearly like another helping hand from the RBA and rate relief could provide a welcome boost to their confidence in the lead up to Christmas," he said.
The RBA's decision to hold the official interest rate at 3.50 per cent earlier this month has been questioned by a leading industry spokesperson.
Housing Industry Association senior economist Andrew Harvey commented that cutting interest rates further has the potential to increase confidence and encourage activity in the residential housing construction sector and the wider economy.
