Will a 25 basis point rate cut by the RBA cause any positive movement in the housing market?

Today the Reserve Bank of Australia will sit down to decide whether or not to cut the cash rate to a new record low of 2.5%.

According to RBA data, it has been 53 years since the interest rates were this low - the previous low was 2.89% in January 1960.

RP Data's Cameron Kusher noted that the housing market is likely to continue its current path of modest value increases.

Kusher says that if  "the two additional cuts to interest rates come to fruition, value growth may start to accelerate."

Similarly, John Symond does no expect a rate cut to have much impact on the housing market with caution around the federal election to result in market stagnation between now and the end of the year

{module Will a 25 point rate cut by the RBA cause any positive movement in the housing market?}

Meanwhile, Property Observer reported today in a an analysis of mortgage comparison websites, that non-bank lender State Custodians offered one o the lowest variable rates of 4.74%.