The increase in interest rates needs to be kept in perspective according to Frank Death, CEO of HomeWorld Display Village.

"Although there has been a small increase we still have historically low rates for home buyers and investors to get on with their plans.

"The rate increase did not come as a surprise as the Reserve Bank had indicated this due to a rapidly improving Australian economy. However this is good news as our economy appears to have avoided the worst of the global downturn," Frank Death said.

"There is still a shortage of accommodation in NSW. Demand being experienced by the HomeWorld builders shows that despite the first home buyers grant being reduced, second and third home buyers are out in force.

"It’s still a great opportunity for investors to grab a bargain with the economy creating greater confidence and certainty in the property market. Whether you are looking for a first or second home, planning a knock down rebuild, looking for a custom built home or a house and land package there’s a design to suit every budget

.For more information phone the HomeWorld InfoLine on (02) 9629 4822 or visit the website www.homeworld.com.au