Why Australian banks are slashing fixed-rate home loans despite successive interest rate rises
2 years, 5 months ago

Why Australian banks are slashing fixed-rate home loans despite successive interest rate rises

ABC  

It may have gone largely unnoticed among the screeching sirens and the roar of emergency vehicles — but interest rates actually fell last week. In the rush to deliver the bad news on a hugely telegraphed double hike in the official cash rate — which the big four banks passed on in full on their variable rates — most news outlets overlooked the fact that some key lending rates were actually slashed. Pay attention to rate rises Photo shows man taking Australian notes out of a wallet Those with mortgages are facing another hike to their monthly payments after the RBA's latest decision, but what does a rise in interest rates mean for the rest of us? In an alarming report released last week, he questioned the logic behind forecasts that the RBA would continue hiking rates to 3 per cent and possibly beyond this year.

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History of this topic

Surge in wages means beleaguered borrowers must wait for interest rates cut
Trending News
3 weeks, 3 days ago

Surge in wages means beleaguered borrowers must wait for interest rates cut

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Bank of England is …

Major blow for Aussies just before Christmas as Reserve Bank makes interest rate decision
1 month ago

Major blow for Aussies just before Christmas as Reserve Bank makes interest rate decision

Daily Mail  

Australian home borrowers have been dealt a severe blow just before Christmas with the Reserve Bank denying them a rate cut. Governor Michele Bullock gave a strong hint rate cuts could be months away with inflation still too high, ahead of an election next year. Australian home borrowers have been dealt a severe blow just before Christmas with the Reserve …

Mortgage rates below 4% disappear: Why are they going up as interest rates fall?
1 month, 3 weeks ago

Mortgage rates below 4% disappear: Why are they going up as interest rates fall?

Daily Mail  

Mortgage rates continue to rise despite the Bank of England cutting interest rates last week. Going up: Mortgage rates are rising because markets now think interest rates will stay higher for longer, with inflation also forecast to remain higher than previously expected Only a couple of months ago, there were more than a dozen banks offering sub-4 per cent rates. …

Three major banks hike fixed rate mortgages: Why are costs RISING after the Bank of England cut?
1 month, 4 weeks ago

Three major banks hike fixed rate mortgages: Why are costs RISING after the Bank of England cut?

Daily Mail  

Three of Britain's biggest mortgage lenders are increasing rates, despite the Bank of England cutting interest rates last week. Last week, TSB and Santander were among a number of lenders to announce they were cutting mortgage rates across tracker and variable rate deals, in response to the Bank of England cutting base rate from 5 per cent to 4.75 per …

Interest rates might fall in February … but don't bet the house on it
2 months ago

Interest rates might fall in February … but don't bet the house on it

ABC  

It's the hope that kills you. Rate cuts may not come until autumn, if they come at all Now even a February rate cut is looking unlikely, according to the money markets, which are pricing just 20 per cent chance of a cut, despite all four big banks and many other local economists forecasting it. Markets are pricing in a …

Mortgage Rates Continue to Rise as Economic Data Remains Strong
2 months, 2 weeks ago

Mortgage Rates Continue to Rise as Economic Data Remains Strong

CNN  

Mortgage rates rose again this week, marking the fourth consecutive weekly increase. The average rate on a standard, 30-year fixed mortgage was 6.54% in the week ending October 24, 2023, the highest level since early August but still below this year's high of 7.22% seen in early May. Expectations of a Fed rate cut caused mortgage rates to drop to …

Why mortgage rates have gone up, and when they might settle
2 months, 4 weeks ago

Why mortgage rates have gone up, and when they might settle

NPR  

Why mortgage rates have gone up, and when they might settle Mortgage rates have inched higher recently, after falling for several weeks. AYESHA RASCOE, HOST: You might expect that mortgage rates would be falling right now after the Federal Reserve cut interest rates by half a point last month. It's because mortgage rates aren't tied to the Fed's interest rate, …

The cheapest home loan interest rate in Australia as banks slash rates
3 months, 1 week ago

The cheapest home loan interest rate in Australia as banks slash rates

Daily Mail  

Australian borrowers tempted by lower fixed rate mortgages should not jump in too soon, amid predictions of even better deals on offer in 2025. Macquarie Bank on Thursday slashed its two and three-year fixed rates by 20 basis points to 5.39 per cent - now Australia's lowest mortgage rate outside of a green loan. But their lowest fixed rates are …

These numbers are the clues to the Reserve Bank's puzzle: when will interest rates go down?
3 months, 2 weeks ago

These numbers are the clues to the Reserve Bank's puzzle: when will interest rates go down?

ABC  

Perhaps no question matters more to Australians worn down by three years of relentless cost pressures: when will the Reserve Bank cut interest rates? But not too much – which is why when inflation shoots high, the Reserve Bank raises interest rates to suppress demand by making it more expensive to borrow and spend. But the Reserve Bank prefers a …

How the US Federal Reserve rate cut could impact the race for the White House between Harris and Trump
3 months, 3 weeks ago

How the US Federal Reserve rate cut could impact the race for the White House between Harris and Trump

ABC  

The US Federal Reserve has cut rates in a dramatic move that will have a major impact on the American economy and could help determine who occupies the White House for the next four years. By cutting rates by half a per cent, the Fed has signalled it thinks the battle against the high inflation that has plagued the US …

Why is the US cutting interest rates? What does it mean for Australia?
3 months, 3 weeks ago

Why is the US cutting interest rates? What does it mean for Australia?

ABC  

The US Federal Reserve has cut interest rates overnight in an important move for the global economy. Economists predicted the Fed would want to start cutting rates before inflation hits 2 per cent because there's a long lag time between interest rate movements and their effect on the economy. It means the Reserve Bank's cash rate target, which sits at …

Why the Reserve Bank will be forced to cut rates before year's end
4 months ago

Why the Reserve Bank will be forced to cut rates before year's end

ABC  

Until just a few weeks ago, it seemed as though the developed world had pulled off what once was thought to be the impossible. And yet, despite this mounting evidence of a critical economic slump, there remains a rump of high-profile economists openly criticising the Reserve Bank of Australia's reluctance to push interest rates above 5 per cent. Parliament House …

The RBA is making confusion about inflation and the cost of living even worse
4 months, 1 week ago

The RBA is making confusion about inflation and the cost of living even worse

ABC  

There's a paradox about the way we respond to threats to the cost of living. At the same time, when the cost of living climbs enough to push inflation beyond the Reserve Bank's target, the bank pushes up interest rates in an attempt to drive measured inflation down. Sharp interest rate increases are a problem The response of the Reserve …

The US is about to start cutting interest rates, so expect Australia to follow
4 months, 2 weeks ago

The US is about to start cutting interest rates, so expect Australia to follow

ABC  

Just three weeks ago, Reserve Bank Governor Michele Bullock declared interest rate cuts unlikely in the next six months. But if there was any doubt about what's going to happen to global interest rates, the US Federal Reserve chair Jerome Powell removed it on Saturday. Rate cuts by the US Fed and other central banks will create a near-irresistible pressure …

Why Reserve Bank of Australia boss Michele Bullock is refusing to consider cutting rates soon - even though mortgage holders in New Zealand, Canada, UK and EU have already had some relief
4 months, 3 weeks ago

Why Reserve Bank of Australia boss Michele Bullock is refusing to consider cutting rates soon - even though mortgage holders in New Zealand, Canada, UK and EU have already had some relief

Daily Mail  

The woman who decides the fate of millions of mortgage holders has declared a rate cut won't be happening anytime soon - despite what other countries have done this year. Reserve Bank Governor Michele Bullock told a parliamentary hearing on Friday that Australia would not be copying the approach of other central banks that have cut rates this year, with …

Finance guru Mark Bouris makes worrying admission about Australia
5 months ago

Finance guru Mark Bouris makes worrying admission about Australia

Daily Mail  

Finance guru Mark Bouris has claimed that Australia has been in a recession for the past 18 months with the standard of living the worst its been in two years. Finance guru Mark Bouris has claimed that Australia has been in a recession for the past 18 months The cash rate is currently at a 12 year high of 4.35 …

Why this past year has been one of the WORST ever for Australian businesses - as they go bust at a record rate
5 months, 1 week ago

Why this past year has been one of the WORST ever for Australian businesses - as they go bust at a record rate

Daily Mail  

Beautician Giulia Teaupa says she almost closed her business as the most aggressive interest rate hikes in a generation came close to crippling her financially. Giulia Teaupa, who runs Beautician Australia in the Sydney suburb of Miranda, was very close to insolvency as higher interest rates meant she had fewer customers But she was fortunate, having managed to stave off …

Why have interest rates fallen, and what does it mean?
5 months, 1 week ago

Why have interest rates fallen, and what does it mean?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Bank of England has …

Why the Reserve Bank of Australia should hold off on interest rate hikes in August
5 months, 1 week ago

Why the Reserve Bank of Australia should hold off on interest rate hikes in August

ABC  

There's a curious thing about openness, communication and transparency. Because, despite recently showing a real reluctance to want to push interest rates even higher, she and her Reserve Bank of Australia colleagues have for the past two years made it abundantly clear that they were committed to hammering inflation into submission. Money markets right now have just a one-in-five chance …

Why property and stock markets are thumbing their noses at rate hikes
6 months, 1 week ago

Why property and stock markets are thumbing their noses at rate hikes

ABC  

This time it's different. Photo shows RBA governor Michele Bullock at press conference Rate rise after rate rise should have sent the economy into a tailspin, but the RBA isn't fighting a textbook case of inflation. And it's seen central bankers scrambling to try to nut out just why developed economies aren't reacting to interest rate hikes the way they …

High interest rates are hurting people. Here’s why it’s worse for Californians
6 months, 2 weeks ago

High interest rates are hurting people. Here’s why it’s worse for Californians

LA Times  

By the numbers, the overall U.S. economy may look good, but down at the street level the view is a lot grimmer and grittier. “I’ve been really sacrificing a lot to get to this point to purchase a home and now I just feel like I got here but I didn’t work quick enough because interest rates have gotten the …

Reserve Bank of Australia Governor Michele Bullock reveals why business failures are at the highest level in a decade and Labor's new policy to address construction skills shortages
8 months ago

Reserve Bank of Australia Governor Michele Bullock reveals why business failures are at the highest level in a decade and Labor's new policy to address construction skills shortages

Daily Mail  

Australia's most powerful central banker has suggested corporate insolvencies are at a decade-high during a building crisis because many companies couldn't cope with interest rates rising from record lows. Reserve Bank of Australia Governor Michele Bullock has weighed into this to imply many of these businesses couldn't cope with interest rates rising from a record-low of 0.1 per cent. Reserve …

Why further interest rate hikes by the Reserve Bank won't fix Australia's inflation problem
8 months ago

Why further interest rate hikes by the Reserve Bank won't fix Australia's inflation problem

ABC  

If only there was a diagnosed condition called One Size Fits All syndrome. That's helped push one measure of price rises — core inflation — higher on a quarterly measure. Quick as a flash, that's sparked a renewed demand from some sections of the economics commentariat for further rate hikes to smash the evils of inflation once and for all. …

Has the great Australian dream of affordable home ownership turned to a nightmare?
9 months ago

Has the great Australian dream of affordable home ownership turned to a nightmare?

ABC  

Almost everyone recognises the problem. A recent study by the US Federal Reserve Bank of Dallas found that while higher rates since 2021 had made life tougher for home buyers, affordability would have been even worse if rates hadn't risen because housing prices would have risen more. Since the turn of the century, lower interest rates have allowed home buyers …

Why the RBA may be forced to cut interest rates before the Fed
10 months, 3 weeks ago

Why the RBA may be forced to cut interest rates before the Fed

ABC  

There's been a nearly universal assumption by both analysts and traders that the US Federal Reserve will effectively kick off the global rate-cutting cycle for developed economy central banks. While the average mortgage rate in Australia has risen by 3.2 percentage points since the RBA started hiking, US home borrowers, on average, have seen their interest rates rise 0.5 of …

RBA governor Michele Bullock says she doesn't agree with IMF that Australia needs higher interest rates
11 months ago

RBA governor Michele Bullock says she doesn't agree with IMF that Australia needs higher interest rates

ABC  

Reserve Bank governor Michele Bullock says she doesn't agree with the International Monetary Fund that Australia should be lifting interest rates even higher. Earlier this week, the RBA board decided to keep Australia's cash rate steady for another six weeks, at 4.35 per cent, saying there were "encouraging signs" that inflation was falling as required. RBA keeps interest rates steady …

Commonwealth Bank forecasts massive interest rate cuts for Australians: Here's when the country's biggest bank predicts they will begin
1 year ago

Commonwealth Bank forecasts massive interest rate cuts for Australians: Here's when the country's biggest bank predicts they will begin

Daily Mail  

The Commonwealth Bank is now forecasting six interest rate cuts in 2024 and 2025 - starting in September next year as Australian inflation moderates faster than predicted. Mr Halmarick is basing his prediction of 150 basis points of rate cuts, in 2024 and 2025, on inflation falling back to the top of the Reserve Bank's two to three per cent …

Reserve Bank leaves interest rates on hold in an early Christmas present for borrowers - but here's why Aussies with mortgages should be worried
1 year, 1 month ago

Reserve Bank leaves interest rates on hold in an early Christmas present for borrowers - but here's why Aussies with mortgages should be worried

Daily Mail  

Australian borrowers have been warned to expect another rate hike even though the Reserve Bank has this month left interest rates on hold. The cash rate is already at a 12-year high of 4.35 per cent after the RBA last month raised rates for the 13th time in 18 months. KPMG chief economist Brendan Rynne said the Reserve Bank statement …

Radical solution to help millions of struggling Aussies pay off their mortgage after aggressive interest rate rises
1 year, 1 month ago

Radical solution to help millions of struggling Aussies pay off their mortgage after aggressive interest rate rises

Daily Mail  

A Liberal senator is calling for Australians to be able to put their superannuation into an offset account so they can handle rising mortgage rates. The Reserve Bank's 13 interest rates rises in 18 months have caused monthly mortgage repayments to surge by 69 per cent. With variable mortgage rates now approaching seven per cent, Liberal senator Andrew Bragg has …

Home loan interest rate spikes to 8.5%: RBI takes measures to protect the interest of loan borrowers. Details here
1 year, 3 months ago

Home loan interest rate spikes to 8.5%: RBI takes measures to protect the interest of loan borrowers. Details here

Live Mint  

Home loan interest rates have increased from around 6.5% to 8.5% in the last two years. At the time of interest rate change, the borrower to choose whether to increase EMI or loan tenor: Earlier, whenever the interest rates on home loans went up, banks increased the loan tenor. The framework will require the bank to inform the borrower at …

A rising number of households on the cusp of financial stress, but RBA says banking system isn't at risk
1 year, 3 months ago

A rising number of households on the cusp of financial stress, but RBA says banking system isn't at risk

ABC  

Australian homes and businesses are vulnerable to financial stability risks as rising inflation and interest rates continue to pressure the global economy. Key points: Australia's financial system is well-placed to deal with global economic shocks The share of households falling behind on their mortgage payments has picked up a little Despite rising rates, the vast majority of households are servicing …

Reserve Bank unlikely to lift rates in October despite inflation uptick as more households brace for mortgage cliff
1 year, 3 months ago

Reserve Bank unlikely to lift rates in October despite inflation uptick as more households brace for mortgage cliff

ABC  

A "slight uptick" in inflation is unlikely to see the Reserve Bank lift rates at its October meeting, but more than half a million households facing the looming fixed-rate mortgage cliff are being warned to brace for higher repayments. Key points: An increase in August inflation data is unlikely to see the RBA lift rates next week but it could …

Bank of England cuts mortgage rates as the tide finally turns in the battle against inflation - but savers are told to grab good deals amid fears they won't last
1 year, 3 months ago

Bank of England cuts mortgage rates as the tide finally turns in the battle against inflation - but savers are told to grab good deals amid fears they won't last

Daily Mail  

Mortgage rates were cut last night as the Bank of England halted its painful cycle of hiking borrowing costs. Nationwide, Britain's biggest building society, said it was cutting rates on some of its fixed-term deals by up to 0.3 percentage points – and experts said more lenders would follow suit. British Chancellor of the Exchequer Jeremy Hunt leaves Downing Street …

Australia's housing divide masks real interest rates pain
1 year, 4 months ago

Australia's housing divide masks real interest rates pain

ABC  

If it feels like we're in uncharted territory when it comes to keeping a roof over your head, you're right. So by splitting that line out into the different groups of people it represents, you can see that it's the increase in mortgage costs that has driven housing costs to record highs. If you only look at the typical housing …

Mortgage rates reach their highest rate in more than 20 YEARS - here's what it means for new home buyers
1 year, 4 months ago

Mortgage rates reach their highest rate in more than 20 YEARS - here's what it means for new home buyers

Daily Mail  

Are YOU worried about rising mortgage rates? Get in touch: [email protected] Home buyers are facing their highest mortgage rates since 2002, as experts warn higher loans could pour cold water on the property market. Home buyers are facing their highest mortgage rates since 2002, as experts warn higher loans the property market to a screeching halt Over the course of …

Bank of England hikes interest rates for 14th consecutive time despite inflation slowdown
1 year, 5 months ago

Bank of England hikes interest rates for 14th consecutive time despite inflation slowdown

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. As it pushed interest rates to a fresh 15-year high, …

Bank of England hints that UK borrowing rates will stay high after its new hike
1 year, 5 months ago

Bank of England hints that UK borrowing rates will stay high after its new hike

Associated Press  

LONDON — The Bank of England raised its main interest rate Thursday to a fresh 15-year high and indicated it would stay high for some time to bring down persistently high inflation — another potential blow for those seeing their rents and mortgages rise during a cost-of-living crisis. The bank said some of the risks from more stubborn inflation, notably …

Bank of England hikes interest rates to 5%, stoking fears of a ‘mortgage bomb’
1 year, 6 months ago

Bank of England hikes interest rates to 5%, stoking fears of a ‘mortgage bomb’

CNN  

London CNN — The Bank of England raised interest rates by half a percentage point Thursday, after data this week revealed surprisingly stubborn inflation. “We are committed to returning inflation to the 2% target and will make the decisions necessary to achieve that.” Financial markets now expect the Bank of England’s benchmark interest rate to reach 6% around the turn …

Which banks have passed on the June RBA rate rise to mortgage borrowers?
1 year, 7 months ago

Which banks have passed on the June RBA rate rise to mortgage borrowers?

ABC  

Following the Reserve Bank of Australia's decision to bump up the cash rate target for the 12th time, some major banks have already responded to the increase. It announced it would increase its home loan variable interest rates by 0.25 per cent per annum for new and existing customers from June 20. Variable interest rates across ANZ’s Australian home loans …

House prices fall at fastest annual rate since financial crisis
1 year, 7 months ago

House prices fall at fastest annual rate since financial crisis

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy House prices fell at the …

How homeowners can escape huge mortgage hikes as lenders raise rates
1 year, 7 months ago

How homeowners can escape huge mortgage hikes as lenders raise rates

The Independent  

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. “We’ve seen the first major lender significantly increase rates and …

RBA delivers 'massive' interest rate hit to millions of Australians already struggling with overwhelming cost pressures
1 year, 8 months ago

RBA delivers 'massive' interest rate hit to millions of Australians already struggling with overwhelming cost pressures

ABC  

It was designed to shock, and it did just that. On Tuesday, the Reserve Bank of Australia increased its cash rate target — after a month's pause — by 0.25 percentage points, to 3.85 per cent. "Don't forget that the RBA estimates that 15 per cent of variable rate borrowers will move into negative cash flow by year's end if …

RBA interest rate rise catches markets, banks and borrowers by surprise
1 year, 8 months ago

RBA interest rate rise catches markets, banks and borrowers by surprise

ABC  

The Reserve Bank of Australia has shocked borrowers and financial markets by resuming interest rate rises after a one-off pause last month. Key points: RBA lifts rates by 0.25 of a percentage point to 3.85 per cent The cash rate is now at its highest level since it was cut to 3.75 per cent in May 2012 Philip Lowe says …

The Mortgage Trap: Help us investigate lending practices in Australia
1 year, 8 months ago

The Mortgage Trap: Help us investigate lending practices in Australia

ABC  

During the pandemic, as house prices surged, many Australians took out very large home loans while interest rates were at historic lows. We want to know whether improper lending practices have contributed to the current financial stress that borrowers are experiencing. We want to examine whether existing policies and regulations provide adequate protection for consumers, or whether they need to …

The RBA's interest rate pause was a close call that could change as early as next month
1 year, 8 months ago

The RBA's interest rate pause was a close call that could change as early as next month

ABC  

The Reserve Bank has revealed its decision to pause its aggressive interest-rate-hiking strategy was a close call, while warning that more hikes may be needed to tame inflation. Key points: The RBA kept interest rates on hold this month for the first time in a year Minutes from the meeting show board members want time to see the lagged impact …

Why New Zealand is beating Australia in the race that no-one wants to win — to a full-blown recession
1 year, 9 months ago

Why New Zealand is beating Australia in the race that no-one wants to win — to a full-blown recession

ABC  

It takes around three hours and 10 minutes to cross the Ditch — the 2,225 kilometre stretch of the Tasman Sea that separates Sydney and Wellington. While the Reserve Bank of Australia called a halt in rate hikes — leaving the cash rate at 3.6 per cent — the Kiwis doubled down, literally, with a double rate hike of 0.5 …

Why fixed-rate mortgage holders will be the worst hit by rising rates
1 year, 9 months ago

Why fixed-rate mortgage holders will be the worst hit by rising rates

The Telegraph  

Just hours after the Bank of England announced a 0.25 percentage point increase in the base rate, Nationwide Building Society said it will cut some of its fixed-rate deals by up to 0.45 percentage points. As of Friday, the lender will offer a five-year fixed rate at 3.94pc – the lowest on the market – for borrowers remortgaging with a …

Federal Reserve hikes interest rates but gives RBA room to pause
1 year, 9 months ago

Federal Reserve hikes interest rates but gives RBA room to pause

ABC  

Never waste a crisis. "We did consider that in the days running up to the meeting," Powell told reporters in a press conference after today's rate rise decision, referring to a period where the banking crisis threatened to spiral out of control. But Powell was keen to maintain a link between the US banking crisis and inflation when explaining why …

Could interest rates in Australia fall after the collapse of two US banks?
1 year, 9 months ago

Could interest rates in Australia fall after the collapse of two US banks?

ABC  

Tuesday was an extraordinary day for bond market traders as they witnessed extreme price movements — and this matters for millions of Australians because the price movements reflect where interest rates are heading. Why Silicon Valley Bank collapsed Photo shows A company sign next to a parking lot displays the numbers 3003 and letters svb The sudden demise of Silicon …

Interest rate rises causing 'hidden poverty' in South Australia, even among those usually considered affluent
1 year, 10 months ago

Interest rate rises causing 'hidden poverty' in South Australia, even among those usually considered affluent

ABC  

They are the victims of "hidden poverty" who are now accessing support for the first time in their lives. Key points: Interest rates have risen 10 times in a row More people are seeking help from charities and financial advisers The state government is focusing on increasing housing supply Ten interest rate rises in a row are biting hard into …

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