Have Fixed Rates Hit The Bottom Of The Cycle?

I have noticed an inter­est­ing pat­tern in one of the recent interest rate charts.

This is slightly dan­ger­ous ter­rit­ory because the past is obvi­ously not a pre­dic­tion of future rate dir­ec­tions. How­ever, this pat­tern does seem to apply at least since the begin­ning of 2009 (when this data series commenced).

The 3 year fixed rate seems to be around three to six months ahead of the vari­able rate.

In other words, if the 3 year fixed rate line in this chart was to be moved for­ward by around four or five months you would see both lines almost overlapping.

In con­sid­er­a­tion of this pat­tern, you will note that the 3 year fixed rate has been flat lin­ing for five months.

How­ever, two of the second tier lenders on our panel have recently increased their 3 year fixed rates. Hope­fully this is not the start of that upward cycle.

Banks interest rate charts fixed rates upward cycle
The cur­rent aver­age 3 year fixed rate for the big four banks (see above) is 4.97% p.a. Con­sider this against one of our non major lender that is cur­rently offer­ing 4.69% p.a.









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He is an enthu­si­astic sup­porter of fin­an­cial lit­er­acy, work­ing closely with cli­ents to help them gain and main­tain con­trol of their fin­an­cial future.

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Con­tact Aaron dir­ect on 02 9818 8643 .

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