Fixed rate demand on the rise
Demand for fixed rates is on the rise, as lenders continue to slash interest rates.
According to new research by Loan Market Group, enquiries for fixed rate home loans increased by 20 per cent over the past quarter.
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The brokerage’s chief operating officer Dean Rushton said the fixed rate market had become highly competitive with several lenders recently offering big cuts following six rises in official rates by the RBA since last October.
“The Loan Market call centre has received approximately a 20 per cent increase in fixed rate enquiries over the last three months,” Mr Rushton said.
“Not all of them are opting to take out the fixed rate products, but it shows people are seriously considering fixing their home loans again due to the appealing offers and the uncertain interest rate climate.”
Mr Rushton said home owners concerned by the possibility of the RBA raising the cash rate from its current level of 4.5 per cent had a number of appealing fixed rate options.
But rate concern is largely unwarranted, as the latest economic data suggests the RBA will keep rates on hold when it meets later today.
Last week, Loan Market Group's executive chairman Sam White said that the RBA would keep rates on hold for the forseeable future, and that the next rate movement could even be a reduction.
