Yes I believe rates are actually going to fall lower as unemployment continues to increase (to 8%) - probably down to 2%
I think we have a floor under house prices at the moment and lower rates will support that floor in most areas and see price growth in more desirable areas.
And Scotty if your so confident rates are going to increase rates then why don't the big4 and major financial institutions believe you ?
Always look at what the banks do with their fixed rates to see where they think rates are going in the future (And they have access to a lot more predictive data than anyone else).
The 2 & 3 year fixed rates very close to the variable rates on offer.
This tells me banks are willing to accept such a small margin for their risk spread (for rate increases) that they in fact think rates are going to fall further in the next couple of years.
