Five-Year Fixed Rate 4.75pc ? ? ?

John Symond expects five year fixed interest rates to dip to 4.75%

http://www.propertyobserver.com.au/...year-fixed-interest-rates-to-dip-to-4-75.html

I think this is very possible, considering Westpac's "interest rate whisperer" Bill Evans now predicting a 0.50% RBA cut in 2015, and 5-year market swap rates now 0.25% lower from a month before!!! :eek: :)

An interesting graph here: http://www.asx.com.au/data/trt/ib_expectation_curve_graph.pdf :eek:

Pretty sure Bill originally predicted a 2% 'bottom' to the loosening phase of monetary policy. Appears with the latest release of macro GDP numbers, his revised his forecasts back to his original forecasts!!!

In all seriousness, he does have access to the latest and greatest information - particularly in relation to funding markets. So he may be on the ball with further drops in the fixed rate market.

Cheers,
Redom
 
Pretty sure Bill originally predicted a 2% 'bottom' to the loosening phase of monetary policy. Appears with the latest release of macro GDP numbers, his revised his forecasts back to his original forecasts!!!

In all seriousness, he does have access to the latest and greatest information - particularly in relation to funding markets. So he may be on the ball with further drops in the fixed rate market.

Cheers,
Redom

We all have access to the wholesale cost of funds - you can track the daily movements by visiting this site daily after 10am and save the daily numbers in a spreadsheet or something: http://www.afma.com.au/data/BBSW

I've compared this to a month ago and the 5-year rate is now 0.25pc lower!
 
the current sub 5s for 5 were visible 2 + years ago.


I see no reason as to why the downward trend will continue for a while yet, although at a slower rate of decay.

ta
rolf
 
Hmm...very interesting indeed. A friend who works in FOREX trading was adamant that rate was going to climb early next year but now is not so sure anymore. When I asked him last week whether I should refinance one of my loans now, he said to hold off for a few more weeks as things are quite volatile and uncertain at the moment. Might actually just hold off on the refinance until next year then.
 
Hmm...very interesting indeed. A friend who works in FOREX trading was adamant that rate was going to climb early next year but now is not so sure anymore. When I asked him last week whether I should refinance one of my loans now, he said to hold off for a few more weeks as things are quite volatile and uncertain at the moment. Might actually just hold off on the refinance until next year then.

If you are waiting to refi a loan with the prime reason being lower rates, consider simply doing a variable and then locking later or. Some of the lenders do have some god 1 year fixed rates at the mo

Ta

Rolf
 
If you are waiting to refi a loan with the prime reason being lower rates, consider simply doing a variable and then locking later or. Some of the lenders do have some god 1 year fixed rates at the mo

Ta

Rolf


That's exactly what I'm doing after consulting my broker today. Thanks for the confirmation!
 
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