I see Newcastle Permanent have ended their 5.99% 3 year fixed rate offer and reverted back to 6.28%. None of the other major players (banks, credit unions etc) seemed to follow them down that far. Next best was Suncorp at 6.20%.
Do people think we may have hit the bottom of the current fixed rate cycle (barring the Euro situation taking a dramatic turn for the worse) ?
3 year fixed rates around 6.20 - 6.30 seem about as good as they have ever been over the last 7-8 years, other than during the GFC (Nov08-Jul09).
I can split at 6.29% 3yr fixed and continue my 1% off the variable component with my current big 4 bank so I am tempted to do that to lock in a bit of certainty. If I could get 5 years at that rate, I would do it in a heartbeat, but other than Heritage Bank at 6.39% 5 years (if only their variable rate was better for the non-fixed component), no-one has brought the 5 year rate down much below 6.65%.
My only hesitation about going 3 year fixed is the Euro situation and whether that is going to cause another GFC. Of course, the problem with trying to time the move into a fixed rate is that if you wait for the situation to become clearer, the opportunity to lock in a good rate will often be lost.
As soon as the Euro problem is resolved, I expect fixed rates will jump back up a bit so it will be no good waiting to see how that plays out. Fortune favours the brave.
I appreciate that deciding to lock in a fixed rate should be about trying to cap the rate at a level you are comfortable with so as to avoid the risk of rates going higher than that (to perhaps an unaffordable level), rather than trying to outsmart the market and perfectly time the bottom, but like anyone, I don't want to lock in too high unnecessarily either.
Decisions, decisions.........
Do people think we may have hit the bottom of the current fixed rate cycle (barring the Euro situation taking a dramatic turn for the worse) ?
3 year fixed rates around 6.20 - 6.30 seem about as good as they have ever been over the last 7-8 years, other than during the GFC (Nov08-Jul09).
I can split at 6.29% 3yr fixed and continue my 1% off the variable component with my current big 4 bank so I am tempted to do that to lock in a bit of certainty. If I could get 5 years at that rate, I would do it in a heartbeat, but other than Heritage Bank at 6.39% 5 years (if only their variable rate was better for the non-fixed component), no-one has brought the 5 year rate down much below 6.65%.
My only hesitation about going 3 year fixed is the Euro situation and whether that is going to cause another GFC. Of course, the problem with trying to time the move into a fixed rate is that if you wait for the situation to become clearer, the opportunity to lock in a good rate will often be lost.
As soon as the Euro problem is resolved, I expect fixed rates will jump back up a bit so it will be no good waiting to see how that plays out. Fortune favours the brave.
I appreciate that deciding to lock in a fixed rate should be about trying to cap the rate at a level you are comfortable with so as to avoid the risk of rates going higher than that (to perhaps an unaffordable level), rather than trying to outsmart the market and perfectly time the bottom, but like anyone, I don't want to lock in too high unnecessarily either.
Decisions, decisions.........
(the last time i fix with Wesucks at 4.99% i was very very happy)...i'll fix one at a time and let it roll down...
