Interest rates will remain low and most property will enjoy modest growth over the next 15 months; this is good news for borrowers and property purchasers.

With wage growth at 1.8 per cent, Australians are stepping back from paying crazy prices at auction.

The Fear Of Missing Out is being replaced by the Need To Spend Wisely.

Much of the sense that is coming into the market is because regulatory hurdles are making it harder to get a loan.

This week, the Australian Prudential Regulation Authority (APRA) produced figures showing a significant slowing in the momentum of mortgage lending – banks’ mortgage portfolio grew by 0.4 per cent in July to $1.58 trillion, the slowest rate for several months.

At the same time, the national economy appears to be strengthening – which means that property will more than stand its ground.

Also this week, the Australian Bureau of Statistics produced data showing that businesses are spending more – which is good for jobs and the businesses from which they buy.

Private sector capital expenditure (capex) rose by 0.8 per cent, eclipsing market forecasts for a 0.2 per cent rise.  And spending expectations for 2017-18 have jumped 18 per cent from three months ago to $102 million.

Because some sanity is coming into the market and because our economic foundations are strengthening, the banks are still competing heavily for your business (subject to APRA’s regulatory hurdles).

This week, one global bank announced rates of 3.63 per cent.

And because banks have got their interest-only lending under control, there is increased expectations that it will get easier to get interest-only loans.

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