Mortgage news archive 5

Inflation Tremors to push rates up. Jim Dickins. Courier Mail, 29th April, 2000.

AUSTRALIA'S inflation rate has jumped to a four year high, making another interest rate increase inevitable.

The increase in inflation to an annual rate of 2.8 percent also means further rate rises after GST begins in July are more likely.

Most analysts believe that the Reserve Bank will try to control inflation next week by raising official interest rates at least .25 percentage points. That would add $34 to the monthly repayments on a $200,000 home loan.....................................

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Dollar Dive Squeezes Home Loans. Andrea Papuc. Monetary Policy. The Weekend Australian, 8-9th April, 2000

 Australians face the near certainty of their fourth interest rate rise in 6 months after currency markets yesterday ignored the Reserve Bank's attempt to prop up the ailing Australian dollar.

The Australian dollar fell below US60cents yesterday for the first time since the Asian crisis 18 months ago after the central bank came under fire for using the "weak" dollar as a reason to lift interest rates on Wednesday........

Rate rise likely as dollar woes outrank retail slide. Ian Henderson, Economic correspondent. Week-end Australian, 1-2 April 2000.

A surprise downturn in retail turnover last month is unlikely to stave off a third official Interest rate rise as early as next Wednesday....................................

Surprise interest hike. Rate rise ambushes mortgages. Ian Henderson, Economic correspondent. Australian, Thursday, 3rd Feb 2000.

Lenders are set to follow the Commonwealth Bank which yesterday raised its home and business interest rates by half a percentage point, adding $60 a month on a $200,000 loan. The banks and other lenders are expected to move within days after the Reserve Bank of Australia raised official interest rates by half a percentage point early yesterday in a bid to prevent economic growth from running out of control.

The move surprised many economists who expected a 0.25 of a point rise....................................

Reserve drives Market up 50 points and.... We're only half way there. 

Financial Market investors and economists expect official  interest rates to rise further, even after the Reserve Bank sprung a surprise yesterday by lifting its cash rate by 50 Basis points to 5.5 per cent..................

$32 more out of your pocket. Home buyers hit as bank rates start rising. Michael McKinnon and Jill Pengelley. Advertiser, Thursday, 3rd Feb, 2000

Home buyers will pay an extra $32 a month on a typical $100,000 mortgage after the Reserve Bank's decision yesterday to lift interest rates by half a percent........ Reserve Bank Governor Ian MacFarlane blamed the increase on faster World growth, and the need to head off inflationary pressures. ...................Prime Minister Howard rejected claims the GST was to blame..............

Don't rush out for quick fix. Tim Boreham. Weekend Australian. November 6th 1999. The RBA has raised rates but borrowers should not be too quick to lock in rates.

In the wake of this week's anticipated Reserve Bank rates increase, many borrowers are tempted to look more closely at the fixed rate option.          But while seeking security is natural in a rising rates climate, borrowers should think carefully about such a move. Many lenders believe that rates may actually fall in the coming months......

Rate rise no cause for panic. Weekend Australian. November 6th 1999         The banks don't expect any rush for fixed rate loans, Glenda Price reports Weekend Australian. November 6th 1999         The banks don't expect any rush for fixed rate loans, Glenda Price reports Does the quarter of a percentage point rise in mortgage interest rates mean homeowners will be rushing to fix their loans? Experts doubt very much whether they'll bother. With   standard variable interest rates coming off 30 year lows, a 25 basis point rise is almost insignificant in the bigger picture..............

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Rate rise too tiny to scare buyers. Maurice Dunlevy.  Weekend Australian. November 6th 1999

The real estate industry believes rising home loan rates will have little, if any, effect on house prices.              Real estate agents across Australia yesterday dismissed imminent rises in most home mortgages of .25percentage points as too little- and too soon - to upset buoyant market conditions in all capitals.....

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...........