We recently received the below email from Westpac Commercial Banking and we wanted to share their insights with you – For some time we have been seeing signs that fixed rates are on the way to bottoming out, and this supports that point of view…Contact your Broker if you’d like to discuss your options!

“Hi all,

We’ve seen very strong signals from our Economics team and the wholesale interest rate market to suggest fixed rates are on the way back up.

Prior to the US Election, our Chief Economist Bill Evans advised that he believed fixed rates had reached their low point.

The market response to the US election has added to global confidence. Trump’s promise of significant infrastructure spending and tax reductions may help rebuild the global economy and break out of secular stagnation. Bill Evans has now changed his view and reinstated the call that the US Fed will raise interest rates next month. Bill expects a total of three rate hikes in the US over the next 12 months. Expect the upward interest rate pressure to spill over internationally.

Market fixed rates have increased by around 0.44% in the past two months, of which around 0.20% was in the past 2 weeks.
Excluding the past few months, market fixed rates are still very close to the historic lows and may represent an opportunity to secure favourable long-term funding expense prior to further forecast rate increases.”

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Mortgage News “Trump Effect” to push up Fixed Rates?