HOME LOAN, YOUR MORTAGE, FIXED INTEREST RATE, AND RBA…

According to Sky News Business reporter, Edward Boyd, Australia may see similar interest rate movements as US as the US Federal Reserve Chair, Jerome Rowell, has told the American public interest rates will rise as soon as March 2022.

Some countries have already lifted interest rates including the United Kingdom, and New Zealand. The RBA will meet for the first time next Tuesday this year making decision of if current cash rate should remain untouched or not.

Many experts have predicted home loan rates may be increased as early as from this year based on the last week’s ABS data showed the lowest unemployment rate in nearly 15 years despite of RBA has long suggested that the cash rate will remain unchanged until 2024.

However, according to one of the most prominent commentators on the issue, Dr Andrew Wilson, of Bluestone Home loans, said that the unemployment numbers were unlikely to force the RBA’s hand. (Source: AustralianBroker by Mike Wood 25/01/2022).

Although the mortgage variable rate in Australia may be held for another year, bond market has called time on fixed rate home loan party since Oct last year. Most of lenders in Australia have increased their 1 to 5 years fixed rate home loan products between 3 to 5 times in the past 3 months.

When most of house owners, who may have thought this home loan fixed rate increasing game is settled, plan easy for their next move to such as refinance current home loan or purchase another investment property, they may found themselves caught by another fixed rate hikes in the near future.

Ref: Interest rates could lift as early as March - skynews.com.au by Edward Boyd 27/01/2022

Ref: RBA cash rate rise fears - expert gives verdict - AustralianBroker by Mike Wood 25/01/2022

Ref: Fixed home loans could spur a faster rise in rates - Financial Review by Ronald Mizen 28/01/2022