Rates Down; Banks Start Lowering Three Year Fixed Mortgage Rates, Ahead of Tuesday's RBA Decision

The Daily Mercury (Mackay, Australia), July 29, 2011 | Go to article overview

Rates Down; Banks Start Lowering Three Year Fixed Mortgage Rates, Ahead of Tuesday's RBA Decision


A STRING of banks has lowered costs on fixed rate mortgages in recent days, while the dollar has slumped against the greenback, in a sign that suggests lower interest rates could be on the cards.

Citibank cut its three year fixed rate mortgage by 33 basis points to 6.99% effective today, according to financial product comparison site RateCity. ANZ Bank trimmed five basis points from its three year fixed mortgage on Saturday, taking it to 7.19%.

An average, the three year fixed rate is now at 7.35%, only five basis points above the average standard variable rate of 7.30% offered by the banks, RateCity said.

aWe haven't seen the gap between average three year fixed rates and standard variable rates this tight for at least the past two years,a CEO Damian Smith said.

Three year mortgage rates, linked to bond yields, often lead the official cash rate movements because the market is trying to guess where the official rate will move.

Although fixed rate mortgages have been easing slightly for some time, it was economists at Westpac who sped up calls for lower rates. The bank stunned the market on Friday by predicting that the Reserve Bank would lop 100 basis points from its official cash rate, starting in December, as the economy grapples with slower growth, cautious consumers and further fallout from the European debt crisis.

Such a move would put the interest rate at 3.75% sometime in 2013, from the 4.75% level it has remained at since November.

Westpac chief economist Dr Bill Evans said the catalyst for the first move was alikely to be further adverse developments in Europe and their knock-on effects on global financial marketsa. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Rates Down; Banks Start Lowering Three Year Fixed Mortgage Rates, Ahead of Tuesday's RBA Decision
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.