One of the first responses to the Reserve Bank's interest rate cut today has come from Metricon, Australia's leading home builder of detached homes, who called the move "very welcome news". Metricon suggests buyers consider the cost of building a new home with the cost of renting.

Speaking at the company's Melbourne head office, Metricon CEO Mario Biasin added:

"The interest rate cut is very welcome news, and we are fairly hopeful it is just the start of a trend of downward moves. We have seen a loss of buyer confidence this year due to the global financial situation despite reasonably strong economic fundamentals in many parts of the Australian economy. This latest interest rate reduction will provide a helpful boost to morale in the market."

"Coming up to the holiday season, it's a useful reminder that some things seem to be becoming a bit more affordable again, after a tough run where people have seen their costs of living increase. This should encourage people to go out shopping for homes again."

Mr Biasin offered that those visiting Metricon display homes over the coming summer months will see the new 2012 range of homes and just how affordable new home ownership can be.

"Apart from the joy of building a new home that is exactly what you want, people are going to be pleased with what's on offer from Metricon. Land prices have softened a bit as land developers need to keep their stock ticking over. At Metricon, we are working even harder to keep our home prices competitive. You can buy a new three or four bedroom home and land package now for weekly repayments of approximately $400-$450, which is about the same or less than many people are currently paying in rent. In the medium-to-long term, we believe it would be much more advantageous for people to get started on their home ownership journey, building their future wealth and security, than to continue making their landlords rich."