Are interest rates finally starting to fall?

It's not a big difference - yet, but the good news is, fixed rates are starting to fall. At the moment, and in general, the difference in variable rates and fixed rates is pretty negligible but in the last few days we've received notification from two banks that several of their fixed rate terms are about to reduce. This is in addition to similar rate drops announced by three bank last week.

Fixed term home loans rates tend to predict the direction of other rates in the market. In general, if a lender expects the cash rate to rise, the fixed rate will usually be higher or move higher than the variable rate. Conversely, if the expectation is for the cash rate to fall, fixed rate will tend to be lower than the current variable rate.

The rate reductions we've seen announced aren't spectacular and they aren't screaming "lock in now' but they do indicate that the direction for rates is down, which is good news for borrowers after the thirteen recent rate rises by the Reserve Bank that started in May 2022.

If you're unsure or wondering about you'current home loan, give me a call on 0402 684 199 and let's discuss your circumstances and potential options. Even the smallest reduction in your interest rate can help make your home loan more manageable.