News
Rates change all the time. Keep up to date with the latest activity so you can manage your mortgage and pay-it-off faster.
Inflation risks turning down
It is looking more and more like we will not see mortgage rates go back to where they were two months ago and that as bank competition for the still shrinking number of mortgage applications grows, discounting of fixed rates will soon reappear.
Rates increasingly look like they have peaked
Inflation numbers have come out higher than expected offshore so expectations have grown that central banks will continue to raise their interest rates at a rapid pace. But therein lies some important information.
Monetary policy still tightening
Two weeks ago I wrote about how fixed mortgage rates for periods of two years and beyond may be at or very close to their peaks this cycle. Since then, a few things have happened which reinforce that view.
Mortgage rates near their peaks
Banks have recently increased their fixed mortgage rates in response to a jump in the wholesale interest rates at which they themselves borrow. The question now is how much more will wholesale borrowing costs will rise? In that regard, the news looks good.
