August brought about another interest rate hold bringing relief to many mortgage holders. Mixed messages from economists is making it difficult to get an indication on where the interest rate market is heading. The Reserve Bank of Australia considered raising rates but left them on hold and are adopting a wait and see approach for now.

The debt worries of the United States and Europe are increasing concerns of another global financial crisis which could lead to falls in interest rates as predicted by Westpac. Fixed rates are also falling and this could be another indication that the market feels rates are likely to fall than rise. Until all these factors become clearer we will just have to wait and see.

In the mean time the banks and non banks are trying to undercut each other regarding interest rates and product. Here are just a few examples of the types of loans that can be found;

6.80% Professional Package ongoing  variable rate for loans greater than $500,000

6.90% 100% Offset variable rate for loans between $250,000 to $500,000

6.85% for a basic loans

3 Year fixed rates have at 6.59% with a professional package

5 Year Fixed at 6.99% with a professional package

To find out if any of these suit your lending needs please contact one of our consultants by sending a mortgage enquiry form.

The Reserve Bank of Australia have decided to give mortgage holders a reprive this month by keeping the cash rate at 4.75%.

This is the sixth straight month the RBA have kept interest artes on hold but they have been keen to raise interest rates at some stage in the future. Softer housing prices, the floods and housing pressures were the main reasons for not increasing rates.

Most economists predicted that rates would remain steady for this month; however, they are predicting a rate rise in August and perhaps another before Christmas.  Future business investment is predicted to come into the country and the RBA is on the lookout for higher growth and inflation later in year which may lead to an increase in interest rates.

For now it is a waiting game and we will have to wait latter in the year to see if mortgage rates are going

  Below you will find the latest mortgage news from the last couple of weeks. For more information and links to these headlines follow us on twitter@MortgageBrief

• Reserve Bank of Australia says that the election won’t stop us raising rates Wednesday 21st July 2010
• Inflation the key to rate rises RBA
• Lenders may increase rates independent of RBA due to higher funding costs – Monday19th July 2010
• 95% loans are still available
• Interest rates remain on hold at 4.50% – Tuesday 6th July 2010