From the SMH:
All the big four banks have increased some of their fixed rates over the past month…”With interest rates at all-time lows, it’s inevitable that rates will start to rise and while it is too early to call when this will happen, it’s not inconceivable that this could happen next year,” said Alex Parsons, the chief executive comparison website RateCity.
“We know fixed rates usually start to rise well before variable rates, and borrowers often miss the lowest point.”
About 82 to 85 lenders measured by comparison website Canstar raised one or more of the rates on their fixed products this month, a jump from 11 lenders in August.
Even so, rates for one-year fixed loans were still edging down this month, with rates set by the major lenders decreasing by an average of 26 basis points, Canstar said, adding that the average rate stood at about 4.89 per cent.
The average fixed rates for one, two and three-year loans were still easing slightly, falling to 4.89 per cent, 4.97 per cent and 5.1 per cent respectively from September to October, Canstar added.
Interest rate markets have actually come back to zero in the few weeks though the uptrend is intact:
It’s natural enough to see some fixed rates follow the turn in cyclical data. I maintain, however, that rates will not rise, and if forced to by Sydney speculators the hikes will be brief followed by further falls.
