Homebuyers have ‘window of opportunity’ to get ahead before rates rise

Homebuyers appear to have missed the boat to lock-in a competitive fixed-interest rate mortgage after ANZ joined its rivals this week in hiking its fixed rates for both owner-occupiers and investors.

Westpac economists are forecasting that the Reserve Bank of Australia will start lifting the cash rate in August, from its record low of 0.1 per cent. They are anticipating several more increases until the cash rate peaks at 1.75 per cent in March 2024. History shows when interest rates start to rise, they typically jump 1.5 to 2 percentage points in the first two years, says Stephen Mickenbecker, Canstar’s group executive financial services.Obtaining a fixed rate over a five-year term kicks the interest rate hikes further down the road. However, the five-year fixed rates being offered are typically higher again than three-year rates.

Sally Tindall, research director at RateCity, says those looking to fix are no longer “flush with choice” like they were 12 months ago. Then, a decision to fix was relatively straightforward – there were about 180 fixed rates offered at less than 2 per cent from which to choose, Tindall says.

jcollett_money Nope. Not the ‘window of opportunity’ but a ‘door to disaster’. Someone mentioned that housing prices never went down. Well it was true because the interest rates were going down. Now interest rate will go up and will push home equity and the price down.

jcollett_money 😂😂 clowns at Sydney morning heard with the fear porn. Rates are never going to rise, they have been trending down to zero for 30 years. How many times have they said they will lift them and they always go the opposite way. Have fun staying poor if you listen to this shit

jcollett_money No, Is this referring to home OWNERS, and recommending they pay down their mortgage as much as possible before rates rise? Because if it really DOES mean home-BUYERS, then that’s just nonsense - house PURCHASE prices won’t drop until RATES RISE.

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