2015 will go down as a record breaking year for interest rates.
Rates have dropped steadily since 2011 from 4.75% and were 2.5% at the start of 2015. It didn’t take long for the RBA to move, dropping the cash rate to 2.25% in early February.
In May the RBA lowered rates again, to an historic 2.00%, where they have remained since.
The decision to lower rates came as a result of lower investment, higher dollar, and dipping commodity prices, among other factors.
It is very likely the cuts had an effect on the property market. Cash has never been as cheap as it has been in 2015 and buyers were able to take advantage.
What the RBA will do in 2016 is already being debated, with some institutions believing another rate cut will be announced by the middle of the year. Even if rates go up, buyers are still able to reap the benefits of historically low figures.