Fixed rates starting to rise again

After nearly two years of downward movement on fixed interest rate home loans, a major bank has made the first increase on their fixed interest rates this year and it’s now likely that other lenders follow suit.

Loan Market corporate spokesperson Paul Smith said that after months of speculation it appears that fixed rate products have reached their lowest point and that they will rise as funding volatility and improvements in the Australian economy prompt higher fixed interest rates.

“While there remains a downward outlook on variable rates, fixed interest rates are now likely to rise and soon intersect with standard variable rates. For many home owners, the window to lock in a fixed rate that’s lower than a variable one is closing fast,” Mr Smith said.

Source: Loan Market