In the latest update on home loan rates, Canstar reported minimal movements in interest rates this week.
This trend reflects the banks’ response to recent economic data, including inflation figures and job statistics from the US.
There were a few notable changes:
Arab Bank Australia continues to offer the lowest variable rate for any LVR at 5.75%.
Canstar’s database shows 17 rates below 5.75%, the same as last week. These rates are available from lenders such as Australian Mutual Bank, Bank Australia, Community First Bank, Horizon Bank, LCU, RACQ Bank, The Capricornian, The Mac, and Unity Bank.
See table below for the lowest variable rates on offer.
Josh Sale (pictured above), Canstar’s group manager for research, ratings, and product data, provided insights into the current market conditions.
“This week, we observed minimal movement in interest rates across the board. This lack of change suggests that banks are still digesting the recent inflation data released last Wednesday,” Sale said.
“The figures broadly met expectations, with the RBA’s preferred measure of trimmed mean inflation showing encouraging signs of trending in the right direction. Coupled with unexpectedly poor jobs data from the US, this has led to a reassessment of future rate hike expectations.”
Current market sentiment indicates a potential shift in the cash rate adjustment.
“Current market sentiment suggests that the next adjustment to the cash rate could potentially be a cut, rather than an increase, a significant shift from the outlook just a week ago,” Sale said.
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