Mortgage news archive 6

The US Federal Reserve, the Reserve Bank of Australia, the Bank of England and the European Central Bank all left interest unchanged at their policy meetings, quashing speculation [that] they were going to tighten monetary policy..........

Fears of Interest Rates Lift. By Michael McKinnon in Canberra. The Advertiser, 2nd Oct, 1999.  By Michael McKinnon in Canberra. The Advertiser, 2nd Oct, 1999.     

The Reserve Bank could raise interest rates by up to 0.5 per cent at its meeting on Tuesday because of the continued strength of the economy.  The Government has predicted that economic growth will slow from 4 per cent over the last two years to 3 per cent in 1999-2000. But strong retail trade figures and building approvals data released yesterday point to an economy growing well above forecasts, with fears of "overheating" the key to a [possible] Reserve Bank rise...........

Is it time to refinance your mortgage with Mr Mortgage? www.mrmortgage.com.au

Getting real on Interest rates. More money lenders are warming to a disclosure of 'real' interest rates, writes Tim Boreham.

The forces pushing for compulsory disclosure of "real" interest rates believe the measure is inevitable, despite a less than conclusive meeting of State consumer affairs ministers on the issue.

While politicians dither on making the so called average annualised percentage rate [AAPR] mandatory, market forces may drive the decision for them.........

Battlers lose their rate mates  W/E Australian 7-8th August 1999. Some non-bank lenders are starting to mirror the big banks in nudging up mortgage rates, Rachel Hawes reports.

Non-bank housing lenders such as Aussie Home loans and the NRMA Building Society were once the darlings of consumer groups for breaking the banks' cosy home loan oligopoly and sending rates tumbling.

But now says the Australian Consumers Association, they are starting to act like the banks they once vowed to keep honest.

Aussie Home loans and the NRMA Building Society revealed last week that they would join the National Australia Bank and Westpac in slightly lifting their variable loan rates.

From September 3, AHL's standard variable rate will rise to 6.35 per cent from 6.24per cent. The NRMA's equivalent rate jumped to 6.49 per cent from 6.4 per cent on August 3......................

Home Loan rate rises spread to bank rivals. Housing, Bloomberg, Weekend Australian, July 31st 1999.

Aussie Home loans and the NRMA Building Society yesterday raised their variable home loan rates as they succumbed to the same pressures that recently forced similar hikes by two of their big banking rivals.

Aussie said its standard variable rate would rise to 6.35 per cent from 6.24 per cent following prolonged upward pressure on interest rates in the local money market and the latest rise in the official United States lending rate.

NRMA has increased its variable home loan rate to 6.49 per cent from 6.4 per cent, and its Home Value rate to 6.09 percent from 5.99 percent.

National Australia Bank was the first big home lender to raise its rates, lifting its variable home loan rate to 6.55 percent earlier this month. Last week Westpac followed suit, raising its Premium Option  Home Loan variable rate to 6.55 per cent from 6.49 per cent.

Aussie Home Loans managing Director John Symond said the home [loan] lender had withstood the higher rates in the money market for most of the year but finally had to bite the bullet and increase rates.

"While we have been forced to lift our standard variable rates because of recent increases in money market rates, I believe that local official rates will remain at record lows in the foreseeable future, with the potential for another fall before the end of the year," he said.

Similarly, NMRA head of banking Michael Peters said the society had been forced to make changes to rates because of increases in the wholesale funds market since the beginning of the year.

Rate spectre hits home. Rising rates are threatening the great Australian dream, reports Paddy Manning, the Australian, The W/E Australian 12-13 June, 1999.

The 3 year outlook for residential property prices contains some surprising figures, which are a cold shower to property investors, a    leading economic forecaster warns.

In its latest report, BIS Shrapnel predicts home loan interest rates will rise to 9% in the next 12 to 24 months..

BIS Shrapnel national housing director Robert Mellor says "We think, on the balance of probabilities, there's around a 50% chance of a rise of that magnitude.......................

MacFarlane Rules out interest rate rise.                           By Ian Henderson and Florence Chong. [source: The Australian, 22/5/99]

Reserve Bank Governor Ian MacFarlane yesterday firmly ruled out a rise in official interest rates, despite speculation that the US Central Bank's recent shift to a tightening bias of monetary policy could be replicated in Australia............

Split Decision

[source Weekend Australian, May 15-16, 1999]

To fix or float. That is the question.

When economists are split  over interest rates, it may be time to hedge your mortgage bets, reports Michael Stutchbury and Tim Boreham.

The psyche of the quarter acre block is imprinted with the two big swings in interest rates over the past decade. Many Australian home owners still shudder at the thought of the punishing 17 to 20 per cent mortgage of the early 1990's.......