Recent movements in home loan rates, as reported by Canstar, showed fluctuations across both variable and fixed rates for owner-occupiers and investors.
Two lenders increased six owner-occupier and investor variable rates by an average of 0.17%.
Additionally, four lenders raised 76 owner-occupier and investor fixed rates by an average of 0.20%, while two lenders cut eight owner-occupier and investor fixed rates by an average of 0.15%.
The average variable interest rate for owner-occupiers paying principal and interest is now 6.88%. The lowest variable rate for any loan-to-value ratio (LVR) is 5.89%, offered by Pacific Mortgage Group and The Mutual Bank. Notably, there are 23 rates below 5.75% on Canstar’s database.
Steve Mickenbecker (pictured above), Canstar’s group executive of financial services and chief commentator, provided insights into the rate changes and the broader economic context.
“The Reserve Bank minutes that came out last week have done nothing to allay borrowers’ concerns that the expectation of rate cuts this year are fading away,” Mickenbecker said.
Mickenbecker highlighted the ongoing rise in house prices and persistent inflation as key factors influencing the Reserve Bank’s stance on interest rates.
“House price increases continue and are not going to give the Reserve Bank any encouragement to cut early, but it is sticky inflation that is doing the damage,” he said.
Reflecting on the rate increases, Mickenbecker said, “Unfortunately the expectations of high rates for longer have reflected in increases to a handful of home loans and credit cards during the week. At this stage it’s not an explosion, more a creep, but the magnitude is disturbing, with the card purchase rate increases averaging 1.15%.”
Amidst the rate hikes, there is some positive news for savers.
“There is some good news for savers, with four banks lifting savings account rates by an attractive average of 0.31% and eight raising term deposits by an exciting average of 0.62%,” Mickenbecker said.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
