More than one million borrowers are set to come off ultra-low fixed mortgage rates this year and next, meaning the full effect of the ten rate rises to date is yet to be felt.
Academic rigor, journalistic flair
Articles on Mortgage rates
Displaying 1 - 20 of 21 articles
UK borrowers are expecting mortgage rates to fall again. Here’s why this looks unlikely in the current economic environment.
I graphed the average online rate for a $10,000 deposit against the Reserve Bank’s cash rate, going back to 2010. After seeing what that graph reveals, you’ll want to call your bank.
Reserve Bank of Australia governor Philip Lowe is unrepentant about the prospect of further interest-rate rises. In fact, he says there’s a risk the bank is not doing enough.
The cost of borrowing for a home has fallen in recent months, despite repeated increases of the benchmark interest rate. An economist explains the seeming paradox.
While authorities such as the Reserve Bank often see them as risky, interest-only loans can be helpful in some circumstances.
Banks typically do not want their customers to default on property and have processes in place to help reduce the risk of this happening.
Never, in the three decades the Reserve Bank has been targeting inflation, has it been tested by prices rising in unison like this.
Because housing is sensitive to changes in borrowing costs, it can tell policymakers and consumers a lot about whether the Fed’s plan is working.
The extraordinary increase in house prices and debt means mortgage rates of 7% would be as painful to borrowers today as rates of 17% were decades ago.
If financial markets are to be believed, you’ll be paying $1,000 a month more on a $500,000 mortgage by the end of next year. But I don’t think interest rates will go that high – here’s why.
Governor Philip Lowe says it is “not unreasonable” to expect the cash rate to climb to 2.5%. That’s an extra $600 to service a $500,000 mortgage.
The Conversation’s expert panel predicts prices will rise faster than Australians’ pay can keep up in 2022 – and that’s not their only concern about the local economy.
The 55 leading economists surveyed by the Economic Society see few signs of Australia aping the US, where inflation has surged to its highest level in 30 years.
Jobs, economic growth, wages growth and even home price growth are likely to look less threatening by the time we are asked to vote.
Sub-2% mortgages are a thing of the past. The Reserve Bank’s governor has signalled variable rates will rise sooner than previously expected, but says he doesn’t expect it in 2022.
Inflation and wage rises used to shrink the repayment burden. We’re being granted mortgages as if they still will.
Yes, the bank would effectively pay you to borrow money. But negative interest rates won’t please savers, nor will they meet the big challenges of economic recovery.
Investing where you’ve last invested isn’t bright. new research finds that two thirds of property investors do.
Evidence for the prime minister’s contention that the banks are “profiteering” is thin on the ground.
Top contributors
-
Visiting Fellow, Crawford School of Public Policy, Australian National University
-
Lecturer in Economics, Monash University
-
Emeritus Professor of Finance, The University of Melbourne
-
Professor, Finance, UTS Business School, University of Technology Sydney
-
Associate Professor in Property and Real Estate, Deakin University
-
Professor and Head of Department - Accounting, Finance and Economics, University of Huddersfield
-
Professor of Economics, UNSW Sydney
-
Senior Lecturer in Finance, University of Sydney
-
Program Director, Economic Policy, Grattan Institute
-
Lecturer of Economics and Finance Tasmanian School of Business & Economics, University of Tasmania
-
Senior Lecturer in Finance, University of Sydney
-
John Hawkins is a Friend of The Conversation.
Senior Lecturer, Canberra School of Politics, Economics and Society, University of Canberra
-
Associate Professor in Economics, University of Leeds
-
Assistant Professor of Finance, Mississippi State University
-
Senior Associate, Grattan Institute
