http://www.domain.com.au/Public/Art...es_20cut_20to_20ease_20mortgage_20belt_20pain I don't know about the mortgage belt as they're not the only ones suffering at the moment, but it looks likely that more interest rate cuts are to come. I can see fixed rates being very very popular in another 2-3 mths if things keep heading downwards.
I definitely agree that more rate cuts are likely. I'm expecting to see the cash rate under 1.5% by the end of the year, maybe even at 1% or lower! I agree fixed rates will start to look VERY attractive with one or two more rate cuts. My only fear is that rates also have the potential to stay super low for quite a few years if this global recession plays out anything like it did in Japan in the mid 90s, and I think we have all seen there have been a number of people that have been caught short when it came to fixing rates only to see them drop further and then present the mortgage holder with big exit fees. So fixing your rates is still a gamble.
Jacque The short term fixed rates (12-24 month) should drop but I am interested in the 10+ year fixed rates and unfortunately they are not coming down much. In fact I don't know if they will drop much lower than they are today. If they do, I will be tempted to fix some of my loans. If they don't, I'll stay variable. cheers
I believe that by the middle-latter part of the year, we may well be in a better position to judge fixed rates, Bill. There's some banks and lenders who have got some fixed rates under 5% but only for a yr. Eg NAB has their Choice package fixed 1 yr at 4.99% 2 yrs 5.09% but 5 yrs is still 6.19%
