Five lenders cut a combined 26 owner-occupier and investor variable rates by an average of 0.11% last week, while another five lenders reduced 76 fixed rates by an average of 0.27%, according to Canstar.
Canstar insights director Sally Tindall (pictured) noted the timing was notable given hike speculation elsewhere.
"Further rate hikes might be looming, but rate cuts were firmly on lenders' agenda last week with five providers cutting new customer variable rates and five cutting fixed," Tindall said.
The average variable rate for new owner-occupiers on principal and interest loans now sits at 6.66%, while the lowest variable rate on Canstar's database, offered by LCU and Pacific Mortgage Group, is 5.69%. Only three rates on the database currently sit below 5.75%, a figure that has held steady.
Economists remain split on whether the Reserve Bank will lift rates at its meeting in two weeks. Tindall said market expectations are still leaning against a hike, for now.
"An RBA rate hike in two weeks' time is still seen as a chance rather than a probability by many economists, however, with Australia's employment figures still posting reasonable results and inflation continuing to put pressure on both households and the central bank, we could end up the other side of August with mortgage hikes rather than cuts," she said.
Tindall flagged the governor's speech and Wednesday's ABS inflation print as the next signals worth watching for clues on the central bank's thinking.
With cost-of-living pressure continuing to squeeze borrowers, Tindall encouraged households to address financial strain in manageable steps rather than all at once.
"Our advice? Chip away at it. Start with one bill and see how you go," she said.
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