Analyst notes the banks are moving away from competitive prices
This week has been relatively steady across the mortgage market, according to Sally Tindall (pictured), research director of RateCity.com.au, in the company’s latest weekly wrap-up. A surge in one-year fixed hikes has been observed, with Bendigo Bank, IMB and Great Southern Bank lifting these rates on the back of rising expectation of another cash rate increase.
Only one lender is advertising variable rate under 5.5% on the RateCity.com.au database (introductory rates) after First Option moved out of the lowest rate table with a sizeable 30-basis-point hike to its lowest rate. Tindall has described this to be “notable change” from two-and-a-half months ago “when a total of five lenders were offering at least one variable rate under this mark.”
“This demonstrates it’s not just the big banks walking away from competitive prices, but some of the smaller lenders as well,” said Tindall.
Tindall also said there could be another rate hike by the Melbourne Cup and so the focus has been on the next round of inflation figures, which will be released by next Wednesday.
“This data, along with the labour force figures, will play a key role in the RBA’s decision making at their November board meeting,” Tindall said.
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