Fixed Rate Home Loans - To Fix Or Not To Fix
Tuesday, October 9 2007
There’s a Federal election looming on the horizon and many forecasters are starting to play the guessing game about our mortgage interest rates. In addition, many homeowners are starting to wonder what’s going to happen to interest rates. So, to that end we will try to give you some meaningful information, with the understanding that we, along with any other self-professed expert don’t have a crystal ball.
Following are the latest Australian Bureau of Statistics data that show that the averaged annual inflation rate of 2.1% is still well within the ABS’s containable range. So, it’s now going to be all eyes on the September quarter figures which will be issued on October the 24th. And then after that on to the election.
JUNE QTR 2007 KEY POINTS
The All Groups CPI (Consumer Price Index):
- rose 1.2% in the June quarter 2007, compared with 0.1% in the March quarter.
- rose 2.1% through the year to June quarter 2007.
NOTES
| Forthcoming Issue (Quarter) | Release Date |
| September 2007 | 24 October 2007 |
| December 2007 | 23 January 2008 |
The Reserve Bank of Australia who wield the Golden Scepter when it comes to deeming what the interest rate is going to be, keep mentioning that they’re probably going to have to raise rates because of the robustness of the economy. And in support of their concern, the economy at the moment still seems to have strong momentum.
In our next issue we’ll delve a little deeper into the definitions of fixed rates, the pros and the cons along with the range of options available. In the meantime we’d be happy to help anyone who is immediately interested in fixing part or all of their mortgage.
If you’d like to give us a call on 02 9894 3700 we will provide you with current market information that could be relevant to your personal situation.
Current Special
For example one lender is currently offering a short term special on 3 and 5 year fixed rate terms of 7.59%. If this interests you, you’ll need to hurry, as we feel this won’t last for long. They usually have a quota on these offers and judging by the market mood at the moment we expect they’ll get a rush on this one.
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