Five per cent mortgage rates coming soon
Standard variable mortgage interest rates could fall to five per cent within six months, taking them to the lowest level since 1964 when they were fixed by the federal government. The Melbourne Institute-TD Securities inflation gauge is negative for a second successive month, suggesting prices will fall in the December quarter which could signal a period of deflation. The Reserve Bank is expected to cut the official cash rate by one per cent today and make further cuts over coming months to take the official rate to around 2.5 per cent.
Source: The Age