Interest Rate Graph
- Thread starter farone
- Start date
Heres one going back about 15 years in a great post from Pitt St:farone said:
http://www.somersoft.com/forums/showpost.php?p=170473&postcount=7
Pretty sure a few more having been posted going back further, but a great place to start.
Jamie.
Ya.....that was a great post by Pitt St (as per usual).
The really interesting thing about that graph is the historical relationship between the fixed and variable rates. The banks don't often get it wrong....
Seems to be consolidating a bit ATM tho. Also interestingly the diff between the rates is quite high in comparison. On the chart it looks as tho the rates are setting up to go down again (touch wood).
Updated Pitt St's spreadsheet with current data...
ArJay
The really interesting thing about that graph is the historical relationship between the fixed and variable rates. The banks don't often get it wrong....
Seems to be consolidating a bit ATM tho. Also interestingly the diff between the rates is quite high in comparison. On the chart it looks as tho the rates are setting up to go down again (touch wood).
Updated Pitt St's spreadsheet with current data...
ArJay
Agreed.ArJay said:
That's the popular conception. I've attached a spreadsheet showing how often the bank 'gets it wrong'. It shows that the banks get it right 54% of the time. However, when they get it right it's by a big margin, when the borrower gets it right it's by a tiny margin.ArJay said:
According to the data, since October 2001 it's been better to fix for 3 years than go with variable (but see Note 1 below).
The yellow line on the graph shows the Average Var Rate over the next 3 years. When the yellow line is above the Fixed Rate it's better to fix. Note that's it's never very far above the fixed rate, but when var rates are falling it's a long way below.
Note 1. The current high variable rate discounts offered in recent years appear to skew data.
Note 2. The yellow line uses subsequent data - at any point it is using the NEXT 3 years data. I've assumed all rates will stay the same for another 3 years. So don't use this as a basis for fixing rates today.
CPI /Interest Rates chart
Hi ,
An elderly investor said that he bought property in the early 70's to hedge against inflation even though interest rates were high so I thought I would put some info into a chart.
The chart has CPI and Interest Rates. I thought that the cost of money was important also , ie interest rates minus inflation.
I am also trying to get info on average houseprices and the all ords in excel format. If anybody has or knows where I can get the info it would be greatly appreciated
Regards Bushy
Hi ,
An elderly investor said that he bought property in the early 70's to hedge against inflation even though interest rates were high so I thought I would put some info into a chart.
The chart has CPI and Interest Rates. I thought that the cost of money was important also , ie interest rates minus inflation.
I am also trying to get info on average houseprices and the all ords in excel format. If anybody has or knows where I can get the info it would be greatly appreciated
Regards Bushy
Inflation
I have been doing some research into inflation and the CPI over the last few days.
If we are to relive the 1970's in the near future then you could sure do worse than buying real estate, the idea for inflationary times would be to buy 'things' instead of just holding paper assets. Buy RE and lock in your rates would have been the lesson for the 70's, I understand financing was a lot harder to get though.
Sydney Median Prices during the 70's. Data from Kieran Trass and SeeChange
1970 18700
1971 21200
1972 23700
1973 27400
1974 31800
1975 34300
1976 36800
1977 39200
1978 43200
1979 50700
1980 68850
I have been doing some research into inflation and the CPI over the last few days.
If we are to relive the 1970's in the near future then you could sure do worse than buying real estate, the idea for inflationary times would be to buy 'things' instead of just holding paper assets. Buy RE and lock in your rates would have been the lesson for the 70's, I understand financing was a lot harder to get though.
Sydney Median Prices during the 70's. Data from Kieran Trass and SeeChange
1970 18700
1971 21200
1972 23700
1973 27400
1974 31800
1975 34300
1976 36800
1977 39200
1978 43200
1979 50700
1980 68850
3 year fixed int rate lower than variable ?
I always thought fixed rates were higher given the security of locking in.
I have only ever used variable int rates for investing.
I always thought fixed rates were higher given the security of locking in.
I have only ever used variable int rates for investing.
LearningMan said:3 year fixed int rate lower than variable ?
I always thought fixed rates were higher given the security of locking in.
I have only ever used variable int rates for investing.
Even though it is oversimplifying the situation, whether the fixed rates are higher or lower than variable depends on what the banks think interest rates are going to do....
