Will our lowest home loan rates continue? In my opinion, yes, but for how long is the million dollar question.
Right now, we have the lowest home loan rates for decades and there are no signs of home loan rates rising in the next 6 months, possibly even 12 months. If you are one to watch mortgage rates and what they are going to do over the next few years then here are some resources to help you keep an eye on mortgage rates, and maybe you can come up with your own answer on will our lowers home loan rates continue.
Are these the lowest home loan rates?
There are a number of factors which determine home loan rates such as inflation, the official cash rate and the consumer price index. There are only a few tools which may help us understand what influences rates, but there is a whole world out there that influences global prices which also affects us and also influences whether we can sustain the lowest home loan rates we currently enjoy.
My suggestion is not to try and guess what interest rates are doing and work with what you know now and make sure your financial decisions are based on what you know and not speculation on what they may do. In my experience when you guess (A.K.A Speculate) you can get it right and wrong and if you cannot afford to get it wrong, then leave guesswork out of your financial decision making.
Will rates drop lower?
Every 90 days our Reserve Bank will review the Official Cash Rate and the next review is on December 10th 2015. I think rates will drop lower by another 0.25% but that is my understanding only and they could remain the same or drop even more, so head on over to the Reserve Bank website for more information on the OCR.