Gday everyone,
Just curious what you think the likelyhood is of ever having rates like the 1980's again where it got up to 17% or so. (http://www.loansense.com.au/historical-rates.html)
My thinking is that with the much higher levels of debt these days, the RBA could have a much bigger influence on the general public with much smaller rate increases (i.e. a rate of 8% today may be about the same as 15% in the 80's - just an example).
What are peoples thoughts? Part of the reason I'm thinking about this is because I'm deciding whether fixing all or part of my home loan is a good idea or not. Currently on 5.04% variable, with 3 to 5 year fixed rate loans available around the 7-8% range. Like many have said on here, the best time to fix would have been about 6 months ago - but if there is even the remote possibility rates surging in to the teen's like the 80's - this would still be a good chance to fix.
Just curious what you think the likelyhood is of ever having rates like the 1980's again where it got up to 17% or so. (http://www.loansense.com.au/historical-rates.html)
My thinking is that with the much higher levels of debt these days, the RBA could have a much bigger influence on the general public with much smaller rate increases (i.e. a rate of 8% today may be about the same as 15% in the 80's - just an example).
What are peoples thoughts? Part of the reason I'm thinking about this is because I'm deciding whether fixing all or part of my home loan is a good idea or not. Currently on 5.04% variable, with 3 to 5 year fixed rate loans available around the 7-8% range. Like many have said on here, the best time to fix would have been about 6 months ago - but if there is even the remote possibility rates surging in to the teen's like the 80's - this would still be a good chance to fix.