“Start of Increases to Bank Interest Rates ?
Is this the start of bank interest rates increasing ?
Many market guru’s have been saying it is quite possible that bank mortgage rates could begin to increase early in 2017.
Mortgage Business advised that as from 23rd November a leading non-major lender ME increased rates for new owner
occupier package home loans and some owner occupier/investor fixed rate home loans to 0.05 percent and 0.15 per cent.
This may have been brought about by the fact that Patrick Nolan ME head of loans said that “Despite the increase ME
variable and fixed rates are some of the lowest rates in the market’. Which could be interpreted as meaning that they had room to move upwards without affecting their share of the market.
Nevertheless with a huge difference in the positive real estate markets in NSW, Victoria and Tasmania compared to negative markets in both WA and NT anything is possible. The fact that despite the Federal Reserve repeatedly lowering interest rates to inspire spending the public have remained with ‘hands in their pockets’.
The Reserve Bank is facing some uncertainty and the rising US $ dollar and a strengthening stock market is not making
decisions any easier.
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Brooke Stone Properties