Interest Rates – What to expect…

Keep an eye on the fixed rates at the moment. These rates are shifting. Looking across lenders both majors and second tier, the rates on offer are a very mixed bag which generally means that  the lenders have different opinions on where rates are going in the next few years. Fixed rates being set now indicate where a lender thinks the cash rates will be in the future. So a 3 year fixed rate of 5.49% (Macquarie) indicates that this lender thinks variable rates will be about there in three years time. Compare with CBA Pro Pack 3 year fix of 4.98% and you can see that this bank is predicting a lower variable rate in three years time. This variation in opinion is showing up all over the marketplace at present.