The Reserve Bank has held the cash rate steady since late last year but lenders have been busy adjusting home loan rates to address competitive and margin management issues, as well as positioning their offerings for the next likely move in the cash rate.
Comparison site Canstar reported that since the start of the year 33 lenders have increased variable home loan rates by an average of 17 basis points. Ten lenders have increased fixed rates by an average of 54 bps.
At the same time, 29 lenders cut variable rates by an average of 27 bps and 50 lenders cut fixed rates by an average of 33 bps.
Steve Mickenbecker, Canstar’s group executive financial services said: “The ups and downs of rate moves confirm that we are at or near the turning point in the cycle, with lenders having varying views on timing and fine-tuning their offerings for the next phase.”
The RBA last raised the cash rate in November, when it hiked by 25 bps to 4.35 per cent.
Despite all these movements, average rates and minimum rates have not moved all that much. Canstar reports show that the average owner occupier, principal and interest standard variable home loan rate has fallen from 7.17 per cent in January to 7.12 per cent now.
Back in January, the lowest variable mortgage rate in the Canstar database was 5.89 per cent. Now it is 5.74 per cent, which is being offered by Regional Australia Bank.
The average three-year fixed rate has moved from 6.43 per cent to 6.25 over the same period, and the lowest three-year rate has been unchanged at 5.48 per cent.