{"id":5482,"date":"2024-09-12T09:33:32","date_gmt":"2024-09-11T23:33:32","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5482"},"modified":"2024-09-12T09:33:32","modified_gmt":"2024-09-11T23:33:32","slug":"fixed-rates-tumble-a-sign-of-things-to-come","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/fixed-rates-tumble-a-sign-of-things-to-come\/","title":{"rendered":"Fixed rates tumble: a sign of things to come?"},"content":{"rendered":"
While about\u00a04-in-5 Australian households are currently on a variable-rate mortgage<\/a>, fixed-rate home loans shouldn\u2019t be overlooked.<\/p>\n Locking into a fixed rate can offer several advantages, including certainty of repayments \u2013 which may make budgeting easier \u2013 as well as protection from possible rate hikes during the fixed term.<\/p>\n Right now, the direction of fixed rates is attracting plenty of attention.<\/p>\n A growing number of lenders, including several major banks, are starting to cut fixed rates across all terms, according to Mozo\u2019s\u00a0latest banking round-up<\/a>.<\/p>\n Macquarie Bank, Commonwealth Bank, HSBC, Bank of Queensland, Westpac and its stable of brands \u2013 St.George, BankSA and Bank of Melbourne \u2013 have all recently cut some of their fixed rates.<\/p>\n They were joined by smaller lenders such as Hume Bank, MOVE Bank and Great Southern Bank, which also dialled down their fixed rates.<\/p>\n What\u2019s especially exciting is that a number of these rate cuts were surprisingly large, in some cases worth half a percent or more for 2- to 3-year fixed rate terms.<\/p>\n Home loan interest rates \u2013 both variable and fixed \u2013 are shaped by a variety of factors.<\/p>\n When it comes to fixed rates, a key driver can be lenders\u2019 forecasts of where they believe interest rates are headed.<\/p>\n In this way, fixed rates can be a bellwether for the direction of future interest rates.<\/p>\n Among the major banks, Commonwealth Bank\u00a0expects a 0.25% RBA rate cut<\/a>\u00a0in late 2024.<\/p>\n ANZ is anticipating the RBA to cut rates from about\u00a0February next year<\/a>.<\/p>\n NAB has pencilled in a\u00a0rate cut by mid-2025<\/a>, and Westpac is expecting several rate cuts starting in\u00a0March 2025<\/a>.<\/p>\n The good news is that none of the big four banks seem to be anticipating rate hikes any time soon, and that\u2019s great for those with a home loan.<\/p>\n The trend to lower fixed rates suggests variable rate cuts may not be too far away either.<\/p>\nWhen will interest rates fall? It\u2019s the question everyone is asking right now, and while speculation swirls about future rate cuts, the latest moves in fixed rates suggest we may not have to wait too much longer for variable interest rates to head south.<\/strong><\/p>\n
Many lenders are cutting their fixed rates<\/h3>\n
Why are fixed rates falling?<\/h3>\n
What could this mean for you?<\/h3>\n