The good interest rate news in recent weeks has been big cuts to short-term rates. Now the bad news has started and longer-term rates are increasing. Westpac, this week, increased its medium and long-term rates, after making big cuts to short-term rates last week. TSB has followed suit today increasing its four and five-year rates.
These changes have dramatically changed the look of the yield curve and make it very clear what the best rate options are. We have put the Westpac changes into a graph here to show you what it looks like. We also take a closer look at the ins and outs of Westpac's changes here.
The other rate changes over this past week include Credit Union Baywide dropping its floating rate by 55 basis points to 5.85% and increasing its one, two and three-year rates. Fidelity Life is now offering a one and two-year fixed rate of 5.45% and 6.50% respectively. This one-year rate is now the lowest offered in our table.
During the week AXA's rates were removed from the table. AXA hasn't done much in the way of originating home loans for some time. Part of the reason being that the funds it used to raise money to lend have been closed or frozen. Since those closures much of its lending business has been about topping up existing loans.
The recent Reserve Bank monetary policy statement and unfolding economic events have got the economists reviewing their interest rate predictions. Find out who has changed their minds and where they think interest and mortgage rates are heading here.
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