Can fixed interest rates go any lower?

Tough one to call.

ANZ jumped on board the 4.99% 2 year fixed wagon today.

Cheers

Jamie

Rates aare goin to go down down!!!

jamie from your point of view when banks lower there rates do u think there lending polices change 

Fixing your loan should be about risk management not about trying to 'beat the bank'. Also remember that you don't need to fix your whole loan – you can split your loan into a fixed portion and a variable portion.

Many investors do this so that they have an element of risk management and also can take advantage of the usual variable features like offset facilities, etc.

Regards

Shahin

It's interesting to see that graph because it feels very similar to 2009 from where I'm sitting. Rates have dropped to 5%, FHB's seem to be moving back into the market and investors with equity are buying up. 

Cheers

Jamie

My view is I would be surprised if fixed rates went a lot lower than 4.75%  on a fixed rate. This is a good figure if things get worse who knows. However the signs are indicating that things are getting better both in Australia and certainly in the United States.

We have to stop looking at the retail sector because that is changing because of the internet.

It's interesting to speculate on this.

The reason everyone keeps looking at retail is because it is one of the larger employment sectors. It also employs a range of part time, casual and full time. And it is country wide. A lot of commentators look at mining but mining doesn't even come close to employing the people that retail does.

When retail starts trimming jobs (it's been happening for awhile now) then the economy has the flu.

There is a parliamentary enquiry into pricing on electronics at the moment, because we are getting stitched up as a country.

In Australia we don't get global pricing on electronic items, so we pay a higher price. That's why you can buy a laptop online for $500 and here it costs $700. It will be interesting to watch what happens with this, as if we can get better pricing in Australia, retailers will probably be able to become competitive with online shopping. Then more people will shop in Oz, more employees etc etc.

I think if interest rates keep coming down it's going to be a real mixed bag of winners and losers.

Jac I agree, if you can weather the storm why worry about it. It just means that the people who really thought about their financial future survive and that the 'hopers' end up in a not very nice situation.

Be interesting to see the next 12 mths unfold.

D

Yep, it's becoming the norm by the looks of it

Cheers

Jamie

D WOLFE great point!!!!

I always say this, many people struggle when times are good and many people thrive when times are bad.

simple as that…

Yep Nigel,

I got told a story yesterday, about where the same product can be obtained cheaper after passing through several 3rd party distributors, than by coming through the main supplier channel. I think Australian retail has a few extra problems that need work over and above the internet shopping deal.

Once a few retail business work out some streamlining we might see a better 'deal' for shoppers. On the other hand we might also suffer from a lack of choice as ranges get slimmer so retailers can try to make money. Where before we may have been able to buy 10 different cameras we might find that the retailers only stock 4, and they are exclusive models that no one else stocks.

I have to say though going shopping the other day, not many customers out, and plenty of items heavily reduced. Like $80 shirts for $20. It's a pretty dismal outlook for retail, but we might get some new retailers who come into the market with new ideas or the old dogs could learn a few new tricks. You never know.

Sorry everyone, got a bit off topic with this one!!!

D

I have no idea where you get this stuff from but whatever you're smokin' I want some.