The cash rate will remain at the historically low level of 2.5 per cent, the Reserve Bank of Australia announced yesterday.
Although many economists were unsurprised by the Reserve Bank's decision, some still hold the belief that there will be further cuts to the cash rate before the end of the year.
With the cash rate already at a 60-year-low, speculation of further decreases has caused lenders to begin competing more aggressively for home loan market share.
Borrowers are in a position of strength as lenders offer fee waivers, rebates and cash-back offers in order to attract customers.
With the current lending market being so competitive and further cash rate cuts predicted, more Australian borrowers are opting for variable rate home loans, accounting for 73 per cent of all home loans written in September, according to Mortgage Choice.
The competitive lending market partnered with the historically low cash rate means increased housing affordability, which is welcome news for those looking to purchase Carnegie real estate.