Confirmation of Interest Rate Increases to Come ?
Last Tuesday I asked the question if the recent mortgage rate increase of up to 0.15% by the non-major lender ME was a sign of things to come.?
Interesting that RAMS (owned by Westpac) in the same week decided to increase home loan interest by as much as 0.4%.
Granted RAMS is not a major lender – but it is owned by Westpac who is a major lender – and this increase by one of their minor companies could be testing the market reaction.
I believe it is an excellent indicator of where all interest rates are headed in the months to come.
A small increase now of 0.4% does not seem significant – but if in the coming months the Reserve Bank increases interest rates across the board by 0.25 % and the Australian Banks follow suit – then the increase in mortgage rates to the average home owner could become a very significant 0.65% .
Will this worry investors ?
What are your thoughts – are we headed towards mortgage rate increases ?
Brooke Stone Properties