Historical home loan interest rates

Bendigo Bank

The graph below shows the Historical F05 Indicator Lending Rates for home loans, which appear to me to be about 1.8 to 2.5% higher than the Reserve Bank of Australia's official cash interest rate. However, recently the banks and other lenders have increased their rates independently of the official cash rate.

The Reserve Bank sets the cash rate then Australian banks and lenders add their margin of approx 1.8 to 2.5% to get the rate at which they lend to borrowers for loans and mortgages. If you have an existing variable rate home loan then your lending bank will generally increase the interest rate on your loan by whatever increase the Reserve Bank makes to the cash rate, or decrease it if the opposite occurs, but not always the full amount on the lowering of loan interest rates.

The Reserve Bank of Australia's (RBA) main responsibility is monetary policy. Policy decisions are made by the Reserve Bank Board, with the objective of achieving low and stable inflation over the medium term. Other major roles are maintaining financial system stability and promoting the safety and efficiency of the payments system. The Bank is an active participant in financial markets, manages Australia's foreign reserves, issues Australian currency notes and serves as banker to the Australian Government.

The Reserve Bank's 'charter', says:

'It is the duty of the Reserve Bank Board, within the limits of its powers, to ensure that the monetary and banking policy of the Bank is directed to the greatest advantage of the people of Australia and that the powers of the Bank ... are exercised in such a manner as, in the opinion of the Reserve Bank Board, will best contribute to:

(a) the stability of the currency of Australia;
(b) the goal of full employment in Australia; and


cvv dumps

All-time low for mortgage rates

2012-11-21 14:04:33 by jonlansner

From Freddie Mac’s weekly survey, and for the second week in a row, we have new all-time record lows on the 30-year and 15-year fixed rate home loans. The average 30-year fixed rate dropped to 3.31 and .7 point from last week’s 3.34 percent and .7 point. The 15-year fixed landed at 2.63 percent and .7 point, down from last week’s 2.65 percent. The 5-year ARM remained the same from last week at 2.74 percent and .6 point.
BOTTOM LINE: In the past year—assuming a well-qualified borrower received the average 30-year conforming fixed rate on $417,000; the savings would be $157 on his new monthly payment of $1,828 compared to one year ago when rates averaged 3


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Average US rate on 30-year mortgage at 4.22 pct.  — Fairfield Daily Republic
They have stabilized since September and remain low by historical standards. Still, mortgage rates are nearly a full percentage point higher than in the spring. The uptick has contributed to a slowdown in home sales.

Borrowers rush to fix home loans  — Otago Daily Times
"The rising cost of funding [both customer funding through term deposits and wholesale funding] is increasing, and therefore we must increase our home-loan interest rates to pass on this increased cost of funding," a spokesman for the company said.

Barnes & Noble Books The Mortgage Payment Handbook: Monthly Payment Tables and Yearly Amortization Schedules for Fixed-Ra
Book (Barnes & Noble Books)

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