I was hoping to get every bodies thoughts about interest rates, while they have gone down in recent times i do remember the recession of the 90's as a kid and don't want the hardship that everybody went through then. Who would fix their interest rate now or wait to fix or don't fix at all ???
Interest Rates in Australia Short Term and Long Term
Comments
The point of this post is to see what every bodies thoughts are about the economy and where they think interest rates are headed. That's all, if you think its useless i suggest not commenting on the post just move along.
No point in fixing. There's absolutely zero upwards pressure on interest rates at the moment.
Agreed, I think we'll see it come down further yet.
I hate to say never, because future is always uncertain, but I'm happy to bet that in the next 10 years interest rates will not go back to the 90s level, not even close.
What about returning to australia's average of around 5.5%. That could happen quickly in my opinion, just not at the moment.
I'd love that, but Australia Bond 15 Year Yield is now only 1.44%, meaning the pros are willing to lock in 1.44% for 15 years, that tells you market expects not just low rates, but also low rates for really long time.
Official rates at 1%. Home loans at 3% - 4% yet everyone is taking a lifetime to pay off this $1m homes with a zombie levels of consumption because literally everyone is just working for the bank.
Banks rule!
I would like to know if there any trained economists on OzBargain particularly if you work for the reserve bank…..
The interest rate is that low currently and there really isn't a great deal of room to drop, and really isn't going to make or break you if it does. Imagine this scenario - you fix now and in 12 months it's dropped 0.5 - 1%. Oh well, that's life. Scenario 2, you don't fix now and the rate double in 12 months. Well Fek. Feeling pretty cheesed, without doubt. Scenario 3, don't fix and the rates sore to 12% or higher. Really screwed now.
Risk vs reward it is a perfect time to fix, very little to gain by waiting, plenty to loose though.
And that's only laying out negative scenarios. You could fix now and see it rise immediately, who knows.
What’s the point of this post?
Also home loan, credit card, or savings?
I want home loan down, savings up