Some research by the Australian Finance Group (AFG) research reveals that the proportion of investors buying residential properties has dropped to 11.5% of purchasers. According to the Herald Sun, this figure is down from 31.5% in November 2004, and is less than half the Australian average. Also an article in today's SMH notes that 3 year fixed rates are now cheaper than variable rates. The report describes such loans as being "fully featured" but I wonder what our mortgage brokers would say about that? But now that has changed due to a "global savings glut" particularly in Asia. Accordingly, Gruen has changed his mind and at present is suggesting his Peach home loan customers fix. The article goes on to note that an inverted interest rate yield curve in the US has preceded every US recession... Food for thought...What does it all mean? Cheers N.