Experts: Rates at record lows by winter

Monday 09 February 2009

Article by Mozo

Average rates payable on low-interest home loans will reach record lows by winter, many financial experts are betting.

Speaking to Australian Associated Press, Aussie Home Loan chief John Symonds said he believes that the base rate of interest will fall to as low as two per cent by mid-year.

The base rate is already at a 45-year low of 3.25 per cent, with all the major banks passing on the last rate cut earlier this month in full.

And with the flood of new low-interest home loans coming on to the market, Mr Symond urged Aussies to lock themselves into the cheap deals for as long as they can.

“My feeling is if you can lock in a fixed rate within half a percent of record lows, you’ve done very well,” he said.

And he is not alone in encouraging people to get into a fixed-rate low-interest home loan, although Rory Robertson, mortgage strategist at Macquarie, reckons it will likely be near the end of the year before rates bottom out.ADNFCR-1761-ID-19016349-ADNFCR

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