It happened last time we saw rates at relative lows Raw.
The banks made a faint with the left whilst going with the right in gun draw parlance.In other words they raised the rates marginally wanting to get people to hit the .25-5% higher fixed rate before going into competitive phase with lower 3 year rates during the lull before the rates rise.
Will it happem this time?
Hard to say with a relative lack of non-banking competition this time around.Much might depend on the governments efforts at giving the remaining non-bank lenders the backing they said they would to bring about the same competitive phase we had last time.
Whatever the case imo it may be a mistake to fix on the 5 year rate as one will probable get the same advantage with fixing on the 3 year but then paying any higher rate once you come out of the 3 year.
The last cycle was very close to 3 years and may well be a consquence of the RBA realising that if affordability and spending growth are to be maintained that a 3 year cycle will remain although much could depend on the payout phase for the dent the global economic system has racked up during the excessive credit spend up.
Not easy to pick but I'll be watching that 3 year rate very closely in the next 6 months.My bank has a comparison rate table thats generally updated every month and interestingly they havnt reacted with a rise in line with the other banks for my mortgage bracket.
