The clock is approaching midnight when it comes to borrowers wanting to fix their mortgage rates with the period of ultra-low long-term rates set to come to and sooner rather than later.
Fixed interest rates are emerging as the major player after their average dropped lower than variable rates recently.
The June quarter has seen a noticeable seven per cent drop in new interest-only housing loans.
A new survey has shown that a lot of Australians would like to be offered longer-term fixed rate home loans.
Fixed rate mortgage loans are continuing their run of popularity as borrowers become increasingly confident of interest rate hikes sooner rather than later.
Mortgage brokers are reporting a spike in borrowers switching to fixed-rate loans. With interest rates being so low, and possible further cuts to come, borrowers are looking to snap up the low rates on their loans for fixed terms while they can get it.
Both the majors and non-majors are in the midst of a fixed interest rate cutting frenzy.
The ANZ has joined the chorus of cutting fixed mortgage rates, cutting two and three-year loans by 60 basis points to 6.44 per cent. Westpac and the Commonwealth Bank also recently announced rate cuts after massive falls in global share markets.
Interest rates should stay low for the foreseeable future but trying to predict where they’ll go in the medium to long term is hard.
