US Federal Reserve raises interest rates for second time in three months..

US Fed Reserve raises interest rates by 25 basis points

Fed raises rates as job gains, firming inflation stoke confidence

The economics are less predictable then some individuals think now..

 

This rate rise was predicted and "priced in to markets" some would say - weeks ago.

 

Foreigners sell U.S. Treasuries for 10th month in January -Treasury data

I don't think it.s perfectly transparent to everyone..

 

If you follow the bond markets, the financial markets were virtually guaranteeing a 0.25% US rate rise 3-4 weeks ago. No surprise at all.

Overall, globally, bond prices are falling (yields rising), so whether the RBA raises rates is irrelevant. The banks will independently, as the cost of funds increases.
PS: I think the RBA will raise 0.25% in Dec2017, or Feb 2018. Then maybe 2 more rises in 2018. We'll be at 2.25/2.5% by end of 2018. Then more in 2019.

 

Yes it is. Check out the economic calendar fir global financial events. Quite interesting. Anyway, has been showing forecast of move from 0.75% to 1.00% for quite a while now.
You just need to know where to look!
Economic Calendar - Investing.com

 

No surprises here, economy on the move and I see it going from strength to strength.

This will impact on Australian property market as interest rates rise, a complete game changer....

 

So how will this aeffect interest rates here? Should I start looking at locking my loan in or wait it out for the first decision?

 

Fixed rates are likely to rise ahead of a decision because they are risk based. I suggest you talk to your broker before fixing as there are pros and cons, such as you can't offset a fixed rate loan (usually), and you may reduce your interest only term.

 

I can only look it one way,within the last week i have 5 letters from the asx listed banks i have invested in for over 24 years about 6 months too 3 years fixed term rates for money invested and this may only be for unit holders in the various companies but most are above 3% and all banking utopias don't need arguments to convince themselves when money nightmares start..imho..Lock and Load..

 

So should I seriously consider locking in my loan or just sit tight and see what happens on the variable side interest side of things?

 

Maybe it would be better to ask the question to some of the experienced Brokers who share their knowledge each day within this site,as the way i sometimes see things is very different from everyone else..
But this is the only example i can use ,i talked one of our daughters into investing in CBA when it was just below 94bucks a while back that unit price went just below 70bucks looking back it was not good advice ..
Same daughter after looking for over the last three months will settle on her first property early next month..The title holder paid 70k more for the property 7.4 years ago then our daughter paid "70"k down in 7.4 years ..
When i sat next to her at the bank a few weeks ago the loan is locked in for 5 years at the mid 4.5% i just hope i get it right this time after her investment in CBA..IMHO..

 

word on the street is NAB has now increased rates, 25bps for investor loans and 7bps for PPOR, no surprise given their offshore funding

 

Without knowing more about your situation, nobody can say for sure if fixing your rates is the right move for you but the winds are blowing towards rate hikes so considering to fix rate would be prudent, yes.

Suggest speaking with a broker

 

Economist at CBA reckons we'll see rate rises in Australia next year, only after US does another 2 more rate rises this year.
He also said he thinks the US will be simulated right now but 2018/2019/2020 the US economy will come back down again as Trump may not be able to do all he promises.

He also says there is no bubble in the Australian housing market, the doomsayers have been saying it's in a bubble for 25 years but there is concern with too much unit development in Melbourne and Brisbane and slightly in Sydney.

 

Maybe some of the brokers on the forums can share their professional opinion of what might happen over the next few years?

 

I assume he could only be talking about the RBA position? If rates jump in the US, that will move their overseas funding costs up? Is CBA planning to absorb the rise in costs?

The other issue is banks are going to have to move towards a greater share of longer term funding, increasing costs also.