Gap between fixed rates and variable narrows
An increase in rates is already being predicted for early 2014. The gap between fixed interest rates and variable rates has narrowed to 0.79 per cent, suggesting less chance of another rate cut.
Some economists and experts are tipping one more rate cut on Melbourne Cup Day – the first Tuesday in November.
Borrowers who are interested in fixing their mortgage rate may be interested in watching rates over the next few months as fixed rates may begin moving up again, ahead of any RBA rate increases.
Source: Property Observer