The banks spend a lot on trying to forecast the average rate for a time period and then they offer you a fixed rate above that rate.
This is one reason why I stick to variable when rates are high like they are now.
The fact that Westpac is offering 8.89 for one year fixed means that they expect the average rate for the next 12 months to be lower than that. The current variable rate is 9.44 (and will probably stay there for another 4 or 5 months). If the average for the next 12 months will be less than 8.89 then the subsequent 7 months has to see some big drops to achieve that.
Blueballs, you can't have it both ways. First your renters crew says rates will stay high so property price will drop and then you say rates are dropping everywhere else so prices will still drop.
Is it just me or is this inconsistent?
I come to these "discussions" every now and then but find that pretty soon I tire of it because of the absolute bulldust that is put forward as reasoned argument.
I have asked many many times how in the face of vacancy rates of less than 1% can prices drop to the levels you keep trumpeting and NONE of you can put forward a case other than it is happening in other countries.
I am fine with going about this but I will have to take frequent rests as I find the lack of reasoning gets to me. The "I wish it to happen so it must happen" mindset will only lead to you bemoaning property prices in another 12 months time.
