Interest Rates - where now??

[Ausprop]

asset markets are not the primary concern of the RBA

http://www.rba.gov.au/about-rba/our-role.html

some isolated housing action shouldn't be suffficient to draw the RBAs attention at the expense of industry

 

[wategos]

Housing bubbles eventually do enormous damage to an economy so taking action to prevent them would be covered by their directive
c. The economic prosperity and welfare of the people of Australia

 

[D.T.]

Regular banks already do that, when they decide how much they will lend they account for ability to pay higher rates, as they know they will go up.

Thats not really what i meant. If 80% was the legal maximum (like in some other countries), then RBA wouldnt have to count 'housing bubble' as part of their decision making.

Housing bubbles eventually do enormous damage to an economy so taking action to prevent them would be covered by their directive
c. The economic prosperity and welfare of the people of Australia

Economic prosperity and welfare of Australians => Let our houses increase and we'll prosper

 

[ZachAnSel]

This topic quite very important for investor who rely on interest rate, especially negative gearing believer..
Still not to late to fix and yes low rate are here to stay at least another year IMHO..

Low rate + low AUD create interest not only local but international buyer..
Haleluya!!!

 

[VYBerlinaV8]

Latest implied yield curve shows likelihood of further cuts reducing over the past few days.

http://www.asx.com.au/data/trt/ib_expectation_curve_graph.pdf

 

[euro73]

NAB are increasing 3 year fixed rates by 0.25% this afternoon/tomorrow ....


Oops- 20 bpts...

 

[Colin Rice]

NAB are increasing 3 year fixed rates by 0.25% this afternoon/tomorrow ....

Effective Friday 18 October 2013, Homeside will increase its 3 (+.20%) and 5 (+.24%) Year Standard Fixed Rates.

1,2 & 4 to remain unchanged.

 

[coola71]

I think the round of increases are well and truly on the cards. Remember the banks move before the RBA.

 

[Rolf Latham]

I think the round of increases are well and truly on the cards. Remember the banks move before the RBA.

The banks dont effectively price fixed rates per se, your superannuation funds does .......as one example of funds to provide fixed rate wholesale product to lenders to mark up and sell

20pts up or down in the current market could be construed as noise, though you might be right that the fixed market may have bottomed - for this month


ta
rolf

 

[buzzlightyear]

AUD - The Undead

Well it seems you cant kill it! The AUD is now above 96 US cents.

Let's see if the RBA is serious about maintaining the fight to keep it down instead of its bluff and jawboning attempts.

Glenn Stevens, its time to show some testicular fortitude.

 

[123]

I personally hope the RBA increases rates and the AUD goes above parity and stays there for a few years. A high AUD is bad for us is more myth than fact. There are many benefits to both consumers and businesses from a strong dollar but it's mostly farmers and other exporters who want it the other way. The high AUD is keeping a lid on your transport and fuel costs. Despite rising oil prices we are not seeing this at the bowser as the oil price is based in USD which is good for the transport industry. Importing, buying overseas assets and traveling are also major benefits of a high AUD.

 

[Rolf Latham]

Importing, buying overseas assets and traveling are also major benefits of a high AUD.

with unemployment running at near 6 %, and likely higher in reality, I cant see the RBA going up on rates............ and the above benefits while great formany doesnt help those with no work.

What the unemployment stats havent included for many years is the" under employed"- tough trying to feed a family on 28 hrs a week.

ta
rolf

 

[MTR]

Hi Rolf

I think things have certainly changed over the last 6 months, the mining boom is over and unemployment is on the rise

Despite this, its amazing how various property markets around Australia are going gangbusters including Sydney, Perth and I think Brisbane and Melb wont be too far away. Historically low interest rates making it very attractive for FHB and investors to jump in and I believe the RBA will be reluctant to increase IR at this point in time.


MTR

 

[TMNT]

ok, so assuming rates were to rise significantly (not 1-2 rises) but signficantly, but not stupid, I would assume the hot markets would cool down, the neutral markets will probably stay neutral for a bit longer,

but what about flat or slightly struggling markets?? do people think these areas will fall again, ie turn into even more of a buyers market

im currently looking at ipswich which has stayed flat and is starting to move, but me thinks a few more rate rises if they happened would kill the area

 

[rabidz]

With the current inflation report that is better than expected, people (experts) are now talking that we are in the bottom of the cycle (especially long-term fixed rate).

I'm tempted to fix my loan for 5 years now. Any comments?
Thanks.

 

[MTR]

With the current inflation report that is better than expected, people (experts) are now talking that we are in the bottom of the cycle (especially long-term fixed rate).

I'm tempted to fix my loan for 5 years now. Any comments?
Thanks.

I just fixed a $1.2M loan at 4.67% for 3 years, very attractive rate.

 

[INVSTOR]

Well done MTR, just fixed my biggest loan at 4.69 for 3 years.

 

[MTR]

Well done MTR, just fixed my biggest loan at 4.69 for 3 years.

Thanks Invstor,
this one took a while to put together and the val did not come in as expected at least $200K under, just move on and revalue again in 12 months see what happens. Those damn valuations are all over the place at the moment, I keep hearing this from BA, MB and others.

 

[r3ckless]

What bank did u fix it for at 4.69% - ME? as per a few posts back?

I just settled on my loan with CBA and want a rate match!

 

[MTR]

What bank did u fix it for at 4.69% - ME? as per a few posts back?

I just settled on my loan with CBA and want a rate match!

It was AMP