While that would be the third time this year rates have been cut, experts have cautioned wannabe property owners from counting their chickens before they hatch. Canstar director of data and insights Sally Tindall told Yahoo Finance you should be buying a home because you have a good financial footing that isn't dependent on rate cuts.
"Don't rush into any big financial decision just because of what you think the RBA may or may not do," she said.
"You need to be making decisions that span across decades, rather than the one meeting that spans across two days."
Another interest rate cut could be enough to get some people across the line for a loan.
Canstar found that a single person on the average wage was able to borrow $12,000 more after the recent May cut, while a couple could get an additional $23,000.
A poll of nearly 1,800 Yahoo Finance readers found 23 per cent said two cuts had finally allowed them to buy a home.
But Tindall said borrowers needed to keep in mind that some pre-approval loan numbers were the absolute limit of what they could afford to repay.
Interest rates will continue to move in all directions over the lifetime of a 30-year loan, and you need to be prepared to weather any storm.
While lenders will add an extra 3 per cent to your borrowing capacity to account for these storms, Tindall said some people were convinced interest rates are only going down for the foreseeable future and will stay there.
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This was echoed by Zippy Financial principal mortgage broker Louisa Sanghera, who has seen many eager buyers banking a little too hard on the prospect of these cuts.
"Everybody's saying they've got to get in now because house prices are going to go up as soon as interest rates come down, and that's why a lot of people are desperate," she told Yahoo Finance.
"People are planning and wanting to get into investments and do various things, but they're not able to until we get a few more rate reductions."
For those with pre-approval for a loan, Sanghera said it's important to buy what you could comfortably afford, rather than what you could afford with more rate cuts, because those are never guaranteed.
"There's nothing wrong with them coming in early and running the numbers," she said.
"And if they work, they work, and if they don't, they've got to have a plan in place for how they are going to achieve what they want to achieve, or they adjust their expectations.
"There's so much happening in the world right now... people shouldn't go jumping the gun."
What do the banks think the RBA will do at the July meeting?
If you look at the Big Four banks, it's three against one.
That would bring the cash rate down to just 3.60 per cent, after starting 2025 at 4.35 per cent.
ANZ is the only one standing by its prediction that the next slice of mortgage relief would come in August.
An owner-occupier with a $600,000 debt today, and 25 years remaining on their loan, could see their monthly repayments drop by $90 on the back of just one 0.25 percentage point RBA cut.
The Big Four are unanimous on multiple cuts in the months to come, but they are divided on how many it will end up being.
CBA and ANZ think there will only be two more in this rate-cutting cycle. NAB has pencilled in three, while Westpac has forecast four more on the horizon.
These extra cuts could come in August, November, February and May.
If Westpac's prediction comes true, the cash rate would fall to 2.85 per cent, and those monthly savings could jump up to $350.
The Big Four banks all believe the RBA will cut interest rates next month. (Source: AAP)
What do the experts think?
Monthly data was recently released, which showed trimmed mean inflation (the metric the RBA watches closely) was down from 2.8 per cent in April to 2.4 per cent in May, which was the lowest rate since November 2021.
This, combined with weak productivity and continued global uncertainty, could warrant a rate cut, according to some economists.
Economist and Yahoo Finance contributor Stephen Koukoulas said the RBA could have enough data to green light a supersized cut of 0.5 per cent.
"Inflation is below the midpoint of the target range, it's falling rapidly, it's at risk of falling below the bottom of the target band and monetary policy is still restrictive despite those two rate cuts," he said.
Tindall told Yahoo Finance that could certainly be discussed at the July 7-8 RBA meeting, but said the Board would probably want quarterly inflation data before making a call like that.
KPMG chief economist Brendan Rynne said a July 0.25 per cent point cut was “warranted given the continued weakness in the private sector of the Australian economy”, while Oxford Economics Australia analyst Ivy Yu said the data showed Australia was "tantalisingly close" to winning the fight against inflation and there was "no need to wait".
The ASX Rate Tracker, which monitors how the markets are feeling about the official cash rate, has a 97 per cent chance of a rate cut next week.
