From Chris Joye at The AFR:
Awash with the cheapest funding since the global financial crisis hit, some lenders are cutting mortgage rates in a win for borrowers, hoping to leverage into Australia’s frothy housing market.
…analysis by finder.com.au of movements in home loan rates – which covered more than 200 different products between October 2013 and June 2014… [reveals that]… in October 2013 the median variable mortgage rate advertised by lenders on finder.com.au was 5.35 per cent. By June 2014 this had dropped to 5.19 per cent…
While the lowest mortgage rates in generations has meant borrowers are making out like bandits, the news for savers is far more grim…
Between October 2013 and June 2014 every single term deposit rate was shaved. The median 180-day rate slumped from 3.70 per cent to 3.25 per cent, while the median 90-day rate dropped from 3.65 per cent to 3.30 per cent.
As least it’s not as bad as the 1970s:
