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 The RBA should let economics run its course here. If people have borrowed too heavily, then they should wear the consequences of that decision. It feels as though the RBA will protect the banks at any cost, which means protecting the boomers and their wealth. Ironic isn’t it
jcollett_money Who says there going up MSM ?
jcollett_money When their fixed terms expire. Exactly. I remember being told I was mad to fix - for five years. Who’s mad now?
jcollett_money Interest rates going no where, if not fall. The average family with 2 kids need $80- $100,000/year, before they walk out the Front door of their Home.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Homebuyers have ‘window of opportunity’ to get ahead before rates riseWith interest rates on the way up, it is not only variable-rate mortgage holders that will feel the pain. Those who have fixed-rate loans are almost certain to see higher payments when the fixed term of their loan expires. 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. 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 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.
Source: smh - 🏆 6. / 80 Read more »
Lowe warns of ‘abrupt’ effect from US rate risesThe RBA boss has cautioned that financial markets are at risk of an sudden adjustment if surging US inflation forced the Fed to raise interest rates faster. From what I've been seeing he's giving good advise. The international markets have been very jittery this year..
Source: FinancialReview - 🏆 2. / 90 Read more »
US inflation is surging and rates will rise in March, so how long can the RBA hold fire here?Despite surging inflation in the US and elsewhere overseas, the Reserve Bank of Australia thinks it has more time to wait before raising interest rates. But perhaps not as much time as some recent mortgage borrowers were counting on, writes Michael Janda. Oregon late A.G. Frohnmayer'd deleted all records in L.C. It shows I'd changed my name to Nadia Sindi.Lift my old name Faika M. Sindi.Changed first letters of my old name to Saika Findi!Trapped me in a criminal record since 1987! The trade deficit numbers are the latest solid evidence that the US is highly dependent on other countries, particularly China LET'S GO BRANDON
Source: abcnews - 🏆 5. / 83 Read more »
Increasing rates too soon could threaten unemployment target: RBA governorReserve Bank governor Philip Lowe has warned moving too early on interest rates will put historic low unemployment levels at risk but if prices and wages rise quickly, there will be a stronger case for rises.
Source: brisbanetimes - 🏆 13. / 67 Read more »