There was some interesting commentary from Robert Henderson one of NAB Economists about mortgage fixed rates this morning. A link to the full article is below:
http://www.medicalfinancial.com.au/images/120418NABdailyeconomicupdate.pdf
His comments of interest:
It now looks like the RBA is intent on cutting interest rates when it next meets, the only potential hurdle an outsized CPI rise, if yesterday’s April Board Minutes are any guide. But don’t expect fixed term borrowing interest rates to fall further because the likely 25 basis points May cut is already almost fully priced into the market. By March of next year, nearly 1% of cuts are priced in (96bps). Consequently, For borrowers, 3 year rates are pricing an aggressive easing cycle - fixed rate borrowing has become very attractive again. History says this window of opportunity could close rapidly.
If you would like to discuss this or any other financial matter please contact us.
Tags: Website News |
For Events and News
The information on this site is of a general nature. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.
The financial planning services are provided by Medical Financial Pty Ltd trading as Medical Financial Planning (AFSL 506557)