Government statistics suggest that our economy is slowing down and there has been a reduction in the value of house prices over the last 18 months. Interest rates have fallen by more than 1% in China, and American interest rates have now leveled off after rising in the last 18 months.
It feels like the world is economically on hold at present, and most countries are nervous about what will happen in the next couple of years.
Common sense would suggest that falling house prices will ensure that interest rates will fall over the next 12 months. Bill Evans, the chief economist for Westpac has recently stated that he believes there will be two interest rates cuts by the end of 2019. Recently there have been reductions in long terms rates (3-5 year rates) and normally reductions in variable rates follow a reduction in long term rates.
We believe there will be at least one interest rate cut before the end of this calendar year. If you have a current home loan there will be a great opportunity to negotiate your existing home loan rates as interest rates fall.
If you want to know what interest rates are currently available on home loans, please call Kelly at out office on 03 9417 3511 who will happily let you know what interest rates are available.
