Aussie mortgage rates continue to push lower

Although the cash rate hasn’t budged since October last year, Australian mortgage rates continue to push lower, according to CoreLogic:

Australian mortgage rates

According to CoreLogic, mortgage rates were 3 basis points lower over the month for existing owner-occupier loans and 1 basis point lower for new owner-occupier loans.

However, fixed rates have begun edging higher. These have risen 3 basis points since May for mortgages on a term of three years or less. For new mortgages with a term of more than three years, rates have risen by 24 basis points.

Interest-only mortgage rates have also begun to rise, up 5 basis points from February’s low.

The RBA’s lending indicators data for August showed a similar trend, with the average discount variable mortgage rate falling 0.15% to 3.45% – the lowest recorded rate on record:

Mortgage rates

Lowest discount variable mortgage rate on record.

By contrast, fixed mortgage rates have begun to edge higher (to 2.19%); although they remained on average 1.26% below variable rates in August, according to the RBA.

Unconventional Economist
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  1. Jumping jack flash

    “Although the cash rate hasn’t budged since October last year, Australian mortgage rates continue to push lower…”

    Thanks, QE. Thanks, TFF, and thanks, RBA!

    I’ve said before interest rates don’t really matter for a bank, all they care is that the amount of interest they want in return for handing out their debt gets paid to them by any means necessary. If the RBA magicks up a heap of free money and gives it to the banks to pay a portion of their expected interest, then I’m not surprised that the banks will decide they can lower their mortgage rates. If the RBA makes available a heap of debt’s “raw materials” for really cheap, then once again its no surprise that this lowers the price of the finished product, the debt.

    Its not really all that hard to understand in broad terms if you consider banks as debt factories, which is pretty much all they are these days. All those dodgy payments and other shenanigans from the government and RBA simply equate to subsidies, which means the banks can lower the price of their product, debt, and still make as much money as they would have otherwise.

    • Is that article badly written or am I missing something?

      From my understanding, the female participant was 16, of legal age in Victoria and had consensual sex with 2 much older men.
      Legally I’m not sure what they they got done for, as technically she was of age and liking fetid old blokes is not a crime.
      Shrugs. Maybe that’s just her kink.

      Was it filming the act and passing it on as she was under 18? The article doesn’t say what the actual charges were relating to the girl.

      • blacktwin997MEMBER

        Yeah it could have been phrased better. Seems the exploitation angle is what they’re getting at.