- September 23, 2010
- Posted by: admin
- Category: Finance News
After months of cuts, lenders may be starting to once again raise the interest on their fixed rate mortgages.
The yield curve has moved up 30-40bps in fixed rate terms since the start of the month – driven mainly by RBA Governor comments this week. CBA and ANZ moved last week (ANZ 3 year at 7.53%, CBA under MAV package at 7.24%) and both will likely go up again next week based on the spike that has happened this week.
Westpac under their Premier Advantage package (PAP), 3 yr rates are at 6.99%pa. 1 yr rates are at 6.79%pa. PAP variable is 6.81%pa. These fixed rates represent good value relative to the direction that variable rates may be heading especailly in the 1-3 year terms. Whilst decisions on pricing are not finalised and are always subject to review, the clear trend for FR’s and VR’s appears to be up and WBC is no exception.
Are fixed rates really on the way up? Or is this just the banks playing scare tactics to get people to lock in for a longer term?
I think this space will need to be watched very closely and if you are considering a 1-3 yr fixed rate now might be a good time. Don’t wait though as i feel the 3 yr rates will increase as early as next week.