Seems like interest rate maybe on the rise ?

Discussion in 'Property Market Economics' started by hpresident, 3rd Mar, 2017.

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  1. r3ckless

    r3ckless Well-Known Member

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    i fixed all my IHL's, last one fixed September last year.

    only variable is my soon to be non-deductible debt which i'll be leaving as variable.
     
    r3ckless, 13th Mar, 2017
    #21
  2. bhojapudur

    bhojapudur Member

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    Come tomorrow morning we will know which banks have raised their interest rate.

    Heard Bankwest is increasing 15bps for all the home loans ie both OO and Investor alike.
     
    bhojapudur, 15th Mar, 2017
    #22
  3. Kangabanga

    Kangabanga Well-Known Member

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    Tonight fed will raise rates.

    Tomorrow the debt ceiling for USA gov will be reinstated meaning trump needs 218votes from his party to increase it again. He may not get that and usa could face another gov shutdown soon. Treasury rates will also rise further as risk of a usa default becomes an issue.
    Interest rates could really spike further up independently of fed rates if that happens.

    As usual our local banks will not hesitate to pull the trigger.

    UST 10YR is around 2.6% up from 2.4% last month. Means local banks will probably do around another 20 basis points or more depending on fed increase tonight...

    Looks like high probability now of more OTPs unable to settle...
     
    Kangabanga, 15th Mar, 2017
    #23
  4. MTR

    MTR Well-Known Member

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    US economic my on rise and interest rates will continue to rise will impact Au$ and interest rates....game changer
     
    MTR, 15th Mar, 2017
    #24
  5. Barny

    Barny Well-Known Member

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    And I didn't believe it. Proven wrong it seems, good on em.
     
    Barny, 15th Mar, 2017
    #25
  6. Kangabanga

    Kangabanga Well-Known Member

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    And seems like a few more rises to be expected this year from FED, 3 maybe in total. I believe more will be in order as hyperinflation should be setting in with all the QE they have done.

    looks like more bad news for bond market and carry trades. Might start a big move of funds back to USA again from emerging markets.

    Do you think FED will be able to do it? ;D
     
    Kangabanga, 16th Mar, 2017
    #26
  7. Speede

    Speede Well-Known Member

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    It's only the third raise since GFC....calm down.

    Before getting excited about higher rates in AUS...remember AUS & US are in 2 different cycles.

    ZH is not good for you.
     
    Speede, 16th Mar, 2017
    #27
  8. AlbertWT

    AlbertWT Well-Known Member

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    @Propertunity, I thought that there is the oversupply of housing & apartment in Sydney area in the next two years ahead?
     
    AlbertWT, 10th Apr, 2017
    #28
  9. AlbertWT

    AlbertWT Well-Known Member

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    I still don't understand and got confused myself here, if RBA does not increase the interest rate quickly enough or soon enough, the property bubble will keep on growing bigger thus the explosion could be devastating, however, the banks and some other institutions was increasing the loan rate last month due to US FOMC decision o_O?
     
    AlbertWT, 10th Apr, 2017
    #29
  10. Omnidragon

    Omnidragon Well-Known Member

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    As I understand it and it's been a while since I looked, the main funding of most banks in Australia is US$.
     
    Omnidragon, 11th Apr, 2017
    #30
    AlbertWT likes this.
  11. AlbertWT

    AlbertWT Well-Known Member

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    @Omnidragon No wonder that's the reason behind the rate increase :-o
    Thanks for the sharing mate.
     
    AlbertWT, 17th Apr, 2017
    #31
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