Canstar has revealed the home loan rate movements over the past week.
Two lenders – Resi and Yellow Brick Road – increased owner-occupier and investor variable rates by an average of 0.1%. Conversely, BCU Bank cut one owner-occupier and investor variable rate by an average of 0.06%, while The Capricornian reduced one owner-occupier and investor fixed rate by an average of 0.3%.
The average variable interest rate for owner-occupiers paying principal and interest stands at 6.87%, with the lowest variable rate for any LVR being 5.74%, offered by Regional Australia Bank.
There are 26 rates below 5.75% on Canstar's database, consistent with the prior week.
See table below for the lowest variable rates on the Canstar database.
Josh Sale (pictured above), Canstar’s group manager, research, ratings and product data, said that the movements in fixed rates observed a few weeks ago “have really dried up, with lenders in a holding pattern.”
“Slightly higher than anticipated monthly inflation numbers released last week didn't move the needle, suggesting lenders, much like the Reserve Bank, are waiting for more data to determine the next steps,” Sale said.
With the next cash rate decision approaching on June 18, Sale noted that home loan borrowers are likely hoping the Reserve Bank adopts a wait-and-watch approach to determine if the monthly inflation indicator accurately reflects the inflation trend.
“The next quarterly inflation figures are out at the end of July and with the Reserve Bank not ruling out the possibility of further rate hikes if inflation continues to rise, it’s a good idea for borrowers to be prepared for the possibility of another rate hike,” he said.
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