Three year rates come down

The average three-year fixed interest home loan is at its lowest since October 2009, at 7.38 per cent, just 8 basis points over the average standard variable rate of 7.30 per cent.

The trend of lower fixed interest rate mortgages is clear. 18 lenders dropped their three-year fixed rates, some by as much as 60 basis points in June.

Volatility in the global market has made predicting the strength of the economy more difficult, said ANZ's Ivan Colhoun.

For that reason, most economists predict official rate rises to come, even if over a longer period of time that forecast a few months ago.

Source: Sydney Morning Herald