Despite the cash rate nearing the bottom of its cycle the majority of brokers still think that fixed rates have further to fall.
Only 26 per cent of brokers will recommend that clients should fix their home loan this month, Mortgage Business’ latest straw poll has found.
A majority of the 435 respondents – 67 per cent – said they would not recommend fixing while 7 per cent were unsure.
The major banks’ fixed interest rates have recently trended up in the past month, perhaps signalling that the banks believe that rates are close to bottoming out.
But the future of rate movements is far from certain. Most economists still tip the cash rate to fall as low as 2 per cent, and with fears over rising unemployment and harsh economic conditions ahead it is understandable that brokers are not unanimously backing fixed rates just yet.
If ANZ chief Mike Smith’s comments at a luncheon in Brisbane last week are anything to go by, brokers could be on the right track.
Asked if borrowers should fix their interest rates, Mr Smith said “I wouldn’t be in a hurry”.
In contrast, Matt Lawler, executive general manager of NAB Broker last week told attendees at the Sydney NAB Broker Roundtable that it was indeed time to start talking to clients about fixing.
“Yes, the cash rate could fall lower but fixed rates are already heading up,” he said.
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