As long as we can lock our interest rates because they will be going up for sure...
RBA to cut rates by 100bp in December
- Thread starter MichaelW
- Start date
As long as we can lock our interest rates because they will be going up for sure...
The cookoo's nest
Way back in March there was heaps of information that clearly showed we were headed into a soft depression. The RBA crowd exist in another stratisphere. I think they must snif ether in Canberra they are so high up
Way back in March there was heaps of information that clearly showed we were headed into a soft depression. The RBA crowd exist in another stratisphere. I think they must snif ether in Canberra they are so high up
The rise of the 90 day bank bill rate.
Rixter,
If you look at the table below:
http://www.sfe.com.au/content/prices/rtp15sfIR.html
Would you interpret from this that the futures market is expecting interest rates to bottom around March - June 2009??
Thanks.
(ADD: Oops, the table changes every 15 mins!)
Last edited:
All i want for christmas is a LOWWWWWWW interest rate. I just signed contract... 30 days to cool so im assuming that my repayments will start late december/early Jan. Fingers crossed it drops 1%. Im currently signed up for 3 yr economiser rate with commonwealth at 7.06% fingers crossed for my new mortgage that it will be 6.06%, oh sweet jesus! I cant belive i am so excited over interest rates.. better earlier then later i guess! I may actually be able to pay it off in 8 yrs...
Way back in March there was heaps of information that clearly showed we were headed into a soft depression. The RBA crowd exist in another stratisphere. I think they must snif ether in Canberra they are so high up
It's alright for them to be working up there, secure with stable public service pay and conditions, but they should not forget the impact of their machination on the laymen; workers and small business. It irks me to hear/read of them referring to historical 'low' foreclosure rate in Western Sydney when there are families out there under stress and breaking up because of over-tightening of credit.
Before you ever lock in your low IRs , read a book called "Wealth Wizards" by Mark Bouris...( He's the guy who started Wizard the MB). History shows it's VERY, VERY difficult to beat the banks at what is truly their game.
LL
It's alright for them to be working up there, secure with stable public service pay and conditions, but they should not forget the impact of their machination on the laymen; workers and small business. It irks me to hear/read of them referring to historical 'low' foreclosure rate in Western Sydney when there are families out there under stress and breaking up because of over-tightening of credit.
Agree totally Francesco ! And what is even worse is the spineless pollies who conveniently and airily ( read Rudd ) adopt a total hands-off, not our fault blame the RBA, couldn't give-a-hoot attitude. Their chickens will most assuredly come home to roost.
LL
i think the RBA has realised it may be the only way to "deleverage" the Australian public - inflation.
OK,
Not trying to be political here, but I don't understand that comment. Are you suggesting the government's $10Bn stimulus package was too "hands off"?
Or, are you suggesting that Rudd's "War on Inflation" was ill advised as it appears to have been with 20/20 hindsight.
Just looking for clarity around how you can perceive the current government's actions to be hands off and blame the RBA.
Cheers,
Michael
we are a long way off!
http://www.commbank.com.au/personal/home-loans/complete-home/rates-fees/default.aspx
why are fixed rates so expensive anyway since the banks know rates are coming down?
because they know it's just a blip on the radar - remember most folk on here would qualify for a 0.7% discount with CBA - which would make 15year rates about 7.2% currently.
minus any drop in Dec and poss Feb/Mar, you could see as low as 6% fixed for 10 or 15 years - depending on how the banks pass it on i guess.
minus any drop in Dec and poss Feb/Mar, you could see as low as 6% fixed for 10 or 15 years - depending on how the banks pass it on i guess.
Because they know they're going to go back up again...
We've got a small, two year max?, reprieve from inflation thanks to the US. We're still the lucky country and Chindia is still industrialising. The commodity super cycle is still in place, just taking a side step for the deleverage game of today.
I expect banks still see inflation fighting being the main game next decade and don't want to lock in long term rates at a neutral or even stimulatory setting. That is precisely why I WANT to lock them in as low as I can in the next 12 months, because I reckon they'll be running up again pretty quickly from 2010 onwards.
Cheers,
Michael
MW, I was actually winding the tape back a bit further to earlier 2008 , the period when IRs were still rising, inflation was THE PROBLEM, and ( I think) post budget. Rudd was on TV and clearly stated that (1) IRs were "not his business", they were for the RBA to manage and the populous could, in effect, "eat cake". (2) house prices were also "not his business". The fact that these two issues were those uppermost in the mind of most of the electorate, and the electorate (sooner or later) would determine his fate seemed to escape Kev at that point in time. Maybe he has re-considered given the US/global debacle ..caused by..in large part ....house prices.
LL
Banks fix their rate according to the funding rate they have to pay, if they'll go just following their guesses they'll bankrupt very soon. Long term rate are higher because they don't have cheap long term funding. If they'll get a pension fund or investor that will lock in money in the bank for 10 years at 5% then you might see 6% 10 years mortgage. It might happen that the Government in a desperation act will borrow money to banks at long term rate of around 5% and then release 10 year treasury bonds that likely will be sold for around 5% (that is the current price for 10 years AUS gov bonds).
So, I believe that if economy and home price will get worse you'll see much more money giving act from the GOV, best time for debt holder or home buyers might have not come jet. I just hope they'll know what their are doing and don't go throught the path of a Banana republic.
Hi BV,
And when do you think will be time to lock interest rates? What will you be looking out for to make decision to lock interest rate?
Cheers
George
For me it will be good time to fix some of my loans when the 5 year fixed rate is @ 5% or the 10 year fixed @ 6%.
I've read in another thread that Westpac as of today is offering a 3 year fixed loan @ 4.99%
http://www.somersoft.com/forums/showthread.php?t=47827
If it's true, this is an excellent offer but 3 years is a too short timeframe for me.
However, I am suspecting that other good deals will come along soon.
I can't wait...
My deciding factor in fixing my IP loans will be my holding costs
A 6% rate will make me cash flow neutral so this will be a good starting point.
My PPOR loan though is more important to get it right so I will wait and see what's on offer
cheers
Rick
Have to say that I agree with you - I'm old enough (and cynical enough) to know that banks aren't renowned for their generosity or philanthropy. If they reckon 4.99% for 3 years sounds good to the masses, then they must think - no, make that KNOW - that IRs are going to be below that level within 3 years.
I'm happy to continue with variable.
Cheers
LynnH
Have to say that I agree with you - I'm old enough (and cynical enough
) to know that banks aren't renowned for their generosity or philanthropy. If they reckon 4.99% for 3 years sounds good to the masses, then they must think - no, make that KNOW - that IRs are going to be below that level within 3 years.I'm happy to continue with variable.
Cheers
LynnH
Last edited:
