THE END OF RISING RATES IS NIGH (Interest Rates Update - August 2022)
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Hi, guys! Will Bell here for another interest rate update. It looks like there’s change in the air. Let’s go and talk about what’s happened.
Banks are reducing their fixed rate loans drastically, inflation is looking to head down but cash rates are still going up.
So just last week, some big names in the banking industry have reduced their fixed mortgages. To name a few are CBA, Westpac, Suncorp, and Macquarie. It’s not just these, but a lot of lenders are reducing their fixed rates.
What does that mean?
Well, that means that their predictions about what the rates are going to be in the future are actually coming down.
What does that tell you? It probably should tell you that it’s not as worse as what the picture was painted the last six months or so.
It’s actually telling us that the end is nigh in terms of this cycle of raising interest rates.
Does this mean it’s party time again?
No, it doesn’t necessarily mean that rates are going to go back to what they were. It just means that inflation numbers aren’t looking as bad as they were before.
So speaking of inflation, the US economy which is the big daddy because the world trades 80% of its commerce in the US dollar, got some new data showing that inflation in the USA that it is ticked down for the first time in a long time. Now, I’m going to call that as “disinflation narrative”, which is basically inflation is decreasing.
So, I’ve actually said this a lot in the past – the media only knows one thing, either on or off, boom or bust, fear or greed.
In this case, it’s inflation or disinflation. So, I think that’s going to tell the tale of the next few months.
Will Bell
Will Bell has 15 years’ experience in the finance industry, the last 11 years he has owned and operated Will Bell Mortgage Broker. He specializes in residential home loans and over the years has carved out a trusted brand. This is proven by the reviews his customers have made regarding the service and the experience he has provided.
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