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Interest RatesDavid Layton [11 Posts]  The million dollar question, Will interest rates continue to rise? when will they fall? This is all very confusing even when you are in the industry. However i suspect that we may have seen the end of the interest rate rises, at least for a time. Westpac chief economist Bill Evans said the 23.9 per cent fall in the consumer confidence index over the past three months - as the Reserve Bank continued to raise rates to contain inflation - was the biggest in the 32-year history of the survey. "This indicates that the Reserve Bank's last rate hike, combined with further independent moves from the mortgage lenders, may have finally slowed demand such that inflationary pressures will ease," this has been the most concrete information I have come across and believe he may be on the money. David Layton David Layton foundation [1158 Posts]  David Layton wrote:
The million dollar question, Will interest rates continue to rise? when will they fall? I saw that too. I note that he also said:
Mind you, I don't have great faith in the foresight of banks and bank economists, given their track record over the last few years! Cheers, F.   tammy [150 Posts]  And today I am hearing that irrespective of the RB's possible hold on interest rates, with the US situation becoming more of a concern, the big 4 are likely to increase the interest rate anyway. Any thoughts on if this is the case (RB holds but banks independantly increase), just how far the banks are likely to push it? Tammy RVP [47 Posts]  So how much have the recent interest rate rises contributed a month to the average home loan of say a quarter mil?? v8ghia [588 Posts]  If you keep an eye on fixed rates, with both banks and non banks (much more $$ now) that gives you a reasonable idea of how the 'experts' feel rates are going to go. It's hard to imagine them going more than another 50 basis points before the market stalls and the repair work begins. In my humbel opinion, they should be left alone for the rest of the year, but hey....? Macnatt [48 Posts] The last rise on a loan of $500 000 increase repayments by close to $100 a month. marg4000 [70 Posts] Today I was at the Commonwealth Bank renewing term deposits for my mother. Interest rate? 7.75% for 3 months This means that the CBA is allowing for another .25% rise in the next few months. Millionaire in ... [142 Posts]  Hi all BDM [94 Posts]  Or perhaps the Million Dollar Question proposed by David here in this post could be re-phrased in Shakespearean form: "To Fix or Not to Fix - that is the question". I am in the process of refinancing a loan or two that is (unfortunately) expiring from the fixing I did three years ago. At the time, three years seemed like a lifetime. Now, with the benefit of hindsight, the 10 year deal at the time was a good one. Never mind..... So, this time around, should I fix for another 3, or 5 years, or longer ? Or not ? Thanks, BDM Property, Websites & Music : these are a few of my favourite things. David Layton [11 Posts] BDM wrote:
Hi BDM, sorry it has taken so long to get back to you i believe you have it right in asking to fix or not to fix. I am not an economist but am still of the belief that due to the numerous issues the banks are facing overseas you would be better off fixing your rates right now. probably only for a short term though. however would be worth asking around for other opinions. thanks. David Layton Chris White [35 Posts] My personal view is to fix. Just fixed for 3 years at 8.49%. ANZ just put up their variable rate today by 0.10%, GE by 0.10% a couple of days ago. Westpac are cutting brokers commissions to ease funding cost pressures. RBA aside, the banks rates are still going up due to the rising cost of funds O/S. Kind Regards Chris White T 1300 664 373 | F 02 9966 5608 | Subscribe to our free newsletter at www.prospergroup.com.au | Visit our weekly property market updates - www.prospergroup.com.au/blog god_of_money [207 Posts] I would fix at 8.49%.. as the interest rates probably will not fall till next year. I won't listen to the economists as their accuracy of predictions are reasonably porr. cheers Don Chris White [35 Posts] With all the contradicting headlines – I think that it is prudent for one to analyse their own situation and make the call based on their level of comfort and tolerance to their loan repayments increasing. It is also important to shop around for the best deals. "Economists have priced the prospect of another cash rate increase as being very remote," she said.But Australian Bureau of Statistics data out this week showed the proportion of fixed rate home loans increased in February by 1.5 percentage points to 23.8 per cent. The result was above the six-month average of 22 per cent. Homebuyers can forget any thought of an interest rate cut this year after inflation jumped above four per cent - its highest level in nearly seven years. Worse still, the Reserve Bank of Australia's (RBA's) preferred measures of underlying inflation raced to a fresh 16-year high. But economists generally believe the RBA will hold off raising interest rates any further for now, although financial markets are pricing in a move for later this year if inflation pressures show no sign of easing. ANZ profit falls for first time in 10 years The seven per cent slide in half-yearly earnings to about $2 billion, comes despite ANZ, Australia's fourth biggest lender, having hiked its interest rates beyond moves in the official cash rate several times this year.
Chris White T 1300 664 373 | F 02 9966 5608 | Subscribe to our free newsletter at www.prospergroup.com.au | Visit our weekly property market updates - www.prospergroup.com.au/blog |
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