Browse Posts “Interest Rates”.
The big four banks have raised fixed mortgage rates on the back of increased funding costs.
National Australia Bank (NAB) yesterday became the last of the big four banks to raise fixed mortgage rates, with the one-year fixed rate up 50 basis points to 6.59 per cent, and its two-year fixed rate up 40 basis points to 7.29 per cent.
NAB’s three-year fixed rate increased 40 basis points to 7.59 per cent.
Westpac, CBA and ANZ have also raised their fixed mortgage rates in recent weeks.
CBA was first off the mark a week ago, citing funding costs as ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Fixed Loan Rates, Fixed Mortgage Rates, Fixed Rate Home Loan, Mortgage Rates.
Interest rates have been tipped to rise when the Reserve Bank of Australia meets on Melbourne Cup Day.
Some economists believe interest rates could rise by as much as 50 basis points, after the RBA revealed it was becoming increasingly concerned the economic recovery could stoke inflation.
Minutes from the October RBA board meeting reveal that the surprise 25 basis point increase that pushed the official cash rate up to 3.25 per cent was brought on by worries about inflation.
There was however some descent from one board member, believed to be the Treasury Secretary Dr Ken Henry, who argued ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Interest Rates, RBA.
The official cash rate could hit 5.5 per cent by the end of 2011, the National Australia Bank’s (NAB) monthly business survey and economic outlook shows.
NAB has forecast yet another 50 basis point increase before the end of this year, which would mean potential rate rises in November and December.
Interest rates are anticipated to rise after the RBA Governor Glenn Stevens hinted at potential rate rises in the coming months.
Speaking at a financial breakfast in Perth yesterday, Mr Stevens said Australia’s weakest financial period had ‘probably past’.
“Barring another serious international setback, the economy is likely to continue on a ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Interest Rates, Variable Mortgage Rates.
The housing industry has expressed concern over the Reserve Bank of Australia's move to lift the official cash rate by 25 basis points to 3.25 per cent, at it's board meeting today.
In a statement released shortly after the move, the Reserve Bank Governor Glenn Stevens said that housing credit has been solid and dwelling prices over the last six months had continued to rise.
The rate rise which is the first since March 2008, makes the Reserve Bank the first central bank in the G20 to raise interest rates in the wake of the global financial crisis.
“In late 2008 and early ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Home Loan Interest Rates, Interest Rates, Mortgage Rates.
Financial markets have tipped an interest rate rise as soon as next month after the economy reported better than expected growth figures in the June quarter.
The economy grew 0.6 per cent last quarter, beating expectations of a sluggish growth of only 0.2 per cent.
The positive result now means the economy has recorded two quarters of positive growth, after a contraction in the December quarter of 2008.
On the back of the positive growth, financial markets moved swiftly today to price in the greater risk of a rate rise as soon as next month.
The interbank financial markets predict there is about a ...
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Categories: Banking and Finance, Home Loans and Mortgages, Interest Rates. Tags: Interest Rates, RBA, RBA Rate Cuts.
There were no surprises at today's Reserve Bank board meeting that left interest rates steady at 3 per cent.
Economists had widely tipped that interest rates would remain on hold, as the local global economies remained in recovery mode.
In a statement released after the meeting, RBA Governor Glenn Stevens said that major economies appear to be approaching a turning point, but the economic growth in 2010 will still be slow.
Mr Stevens also said that consumer spending, exports and business investment have been strong in Australia, but probably due to Government initiatives and therefore may not hold over the coming months.
He believes ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Interest Rates, Investment Loans, Property Finance, RBA.
While interest rates are expected to remain on hold when the Reserve Bank (RBA) meets next week, economists are divided on when the central bank will start winding back the rate cuts made over the last year.
All 18 economists surveyed by AAP this week believe the RBA will keep the cash rate at a 49-year low of 3 per cent at their board meeting next Tuesday.
There were however, differences in opinion as to when and how quickly interest rates would start to move up.
Nomura Australia chief economist Stephen Roberts expects the first rate hike to come in May 2010.
Mr Roberts ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: First Home Buyers Grant, Interest Rates.
The Reserve Bank of Australia has urged homeowners to prepare for an interest rate rise as a return to growth begins to look more likely than a recession.
The central banks announced yesterday that it would leave official interest rates at 3 per cent for the fourth consecutive month.
But this time, in its accompanying monetary policy statement, it removed references to the scope for "further easing if needed".
In a shift from an easing to a neutral bias, RBA governor Glenn Stevens indicated the chance of a severe recession hitting Australia had diminished.
"Economic conditions in Australia have been stronger ...
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Categories: Interest Rates. Tags: Interest Rates, RBA.
There were no surprises today as the Reserve Bank of Australia left interest rates on hold at 3 per cent for the fourth consecutive month.
Citing tentative signs that the US economy was approaching a turning point and the strong growth of the Chinese economy, the RBA said the global economy was stabilising after an earlier sharp fall in demand.
Financial markets had widely tipped that the RBA would leave interest rates on hold with less than 5 per cent chance that there would be a downward movement.
The futures market is pricing that there could be more than five interest rate increases ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Interest Rates, RBA.
Westpac announced on Saturday that it is raising its fixed home loan rates.
From Tuesday, the bank's one year fixed mortgage rates will go up 10 basis points to 5.59 per cent.
Two and three year fixed home loan rates will rise by 40 basis points to 6.39 per cent and 6.99 per cent respectively.
The five-year mortgage rate will also go up 45 basis points to 7.64 per cent.
The bank said it had been forced to raise its fixed mortgage rates because of the rising cost of funding.
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Fixed Home Loan Rates, Fixed Mortgage Rates.
The Reserve Bank of Australia says there is scope to cut interest rates further if it is needed to give further support to demand at a later stage.
According to the minutes of the RBA board's July 7 policy meeting, released today, the early and substantial interest rate cuts and government stimulus had been effective in supporting demand.
The minutes highlighted that "most indicators for the housing market suggested that demand in that sector was picking up. Housing loan approvals had recorded a strong increase, and house prices were again picking up, with the rises becoming more widespread."
The RBA ...
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Housing Loan, Interest Rates, RBA Rate Cuts.
The Reserve Bank of Australia has today left interest rates unchanged for the third consecutive month.
Prior to the decision, economists had tipped interest rates to remain on hold following minutes from its June meeting that revealed the board did not see any pressing reason for a further interest rate reduction.
Despite interest rates remaining steady since April, there is still some conjecture as to the direction rates will go in the months ahead with some economists predicting further reductions and others warning of inevitable rises.
At its board meeting this afternoon, the RBA said the downside risk to the global economic ...
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Categories: Interest Rates. Tags: Interest Rates, Investment Loans, Mortgage Rates, Property Finance, RBA.
Housing credit increased by 0.5 per cent over May, following an increase of 0.6 per cent over April, the RBA revealed today.
According to RBA figures, housing credit rose by 7.0 per cent over the year to May mostly as a result of owner occupiers.
Propped up by historically low interest rates and the generous first home buyers boost, the owner occupier segment experienced strong growth in lending .
Lending to investors on the other hand, experienced weak growth with an increase of 0.1 per cent for the month and 3.8 per cent.
Source: RBA, Mortgage Business
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Categories: Home Loans and Mortgages, Interest Rates. Tags: Investor Lending, Owner Occupiers, RBA.
The RBA today left interest rates unchanged at 3 per cent in a move that had been tipped by economists and financial markets.
The RBA attributed the decision to mortgage interest rates and market rates remain at historically low levels, the considerable support provided by government stimulus and the strengthening of the global economy.
In a statement after the rates decision, RBA Governor Glenn Stevens said that prospects were improved by better conditions in global financial markets.
Evidence that the global economy was continuing to stabilise and the considerable policy stimulus in most countries that have been helping to contain the global ...
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Categories: Interest Rates, News. Tags: Investment Loans, Mortgage Interest Rates, Property Finance, RBA.
Borrowers may have a long wait before the RBA delivers further interest rate cuts, as the central bank maintains a watchful eye on early signs of an economic recovery.
Minutes from the May 5 RBA board meeting showed that the choice came down to either easing monetary policy or keeping interest rates on hold "pending further information on how economic and financial conditions were unfolding."
The RBA decided to leave interest rates unchanged at a 49-year low of 3 per cent.
In assessing the need for further interest rate cuts, the RBA indicated that they "would continue to monitor the strength and durability of ...
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Categories: Interest Rates. Tags: cash rate, Interest Rates, RBA.
Interest rates remained unchanged at 3.0 per cent as the Reserve Bank maintains its wait and see approach, observing the effects of stimulus packages in Australia and around the world.
In his statement at today's meeting, RBA Governor Glenn Stevens said that "while the near-term outlook remains weak, there are further signs of stabalisation in several countries."
"The Chinese economy in particular has picked up speed in recent months and many commodity prices have firmed a little. The considerable economic policy stimulus in train in most countries should help contain the downturn and support an eventual recovery."
The move had ...
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Categories: Home Loans and Mortgages, Interest Rates, News.
Big rate cuts have helped improve housing affordability and are expected to boost residential construction later this year, the Reserve Bank of Australia says.
RBA head of the economic analysis department, Anthony Richards, says large declines in home mortgage rates had led to an improvement in housing affordability.
"It is quite clear that purchase affordability has recently improved very significantly in Australia", Dr Richards said at the fourth annual Housing Congress in Sydney on Thursday.
"The recent sharp improvement in housing affordability clearly mostly reflects the sharp fall in mortgage rates over the past half year."
Interest rates have hit a 45-year ...
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Categories: Home Loans and Mortgages, Interest Rates, News.
NAB Broker will reduce all Homeside variable rates for new and existing customers by 0.10 per cent, effective today.
The move which was announced today will mean that for loans of $250,000 or above, the variable interest rate on the Homeside HomePlus Special Offer would be reduced to 5.17 per cent.
NAB Broker will also offer a Homeside 2 year fixed rate loan of 4.99 per cent, effective today.
NAB Broker regional general manager Matt Lawler when making the announcement encouraged brokers to make careful considerations before advising clients to fix.
"We continue to encourage brokers to take a ...
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Categories: Banking and Finance, Home Loans and Mortgages, Interest Rates, News.
While some economists are tipping no rate cut this month, the jury is still out, with some placing their bets on a 25 or 50 basis point cut.
Expectations that the RBA would cut rates were raised yesterday when the Rudd government warned yesterday that the economy was not immune to the global economic slowdown.
"We've now got a situation where something like seven out of our top ten trading partners are in recession. This will have a dramatic impact on growth in Australia in the December quarter", Treasurer Wayne Swan said.
Should the RBA decide to cut interest rates at ...
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Categories: Banking and Finance, Interest Rates, News.
The prospect of further substantial rate cuts is likely in the coming months after a TD Securities-Melbourne Institute inflation guide recorded its lowest reading in 3 years.
The TD Securities-Melbourne Institute inflation gauge dropped 0.2% last month dragging the annual headline rate down to 2.2%, the Australian Financial Review reported.
While the RBA aggressively raised rates in early 2008 to force inflation down to the 2-3% target range, the economic slowdown caused by the global financial crisis led to substantial rate cuts towards the end of last year.
With the national economy now going into significant slowdown mode, the ...
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Categories: Interest Rates, News.
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