Last week’s home loan rate activity showed modest reductions across various loan types, according to the latest Canstar interest rate wrap.
Three lenders have decreased their owner-occupier and investor variable rates by an average of 0.09%, while two lenders have reduced their fixed rates for similar loans by an average of 0.20%.
See the latest rate adjustments in the table below.
Despite these changes, the average variable interest rate for owner-occupiers paying principal and interest remains at 6.82%, with the lowest available variable rate holding steady at 5.75% from Abal Banking, excluding introductory rates.
Notably, the number of rates below this threshold has slightly increased, with 180 offerings now available, up from 178 the previous week, the Canstar database showed.
For the list of lenders offering rates below 5.75%, see the list below.
Sally Tindall (pictured above), Canstar’s data insights director, provided commentary on the current trends and their implications.
“Cash rate cuts could come, potentially as soon as February 18 with the latest quarterly CPI figures showing a drop to core inflation down to 3.2%, while services inflation is now moving in the right direction," Tindall said.
Despite expectations of rate cuts, the market has not seen the usual rush to lower fixed rates in anticipation. Only two lenders announced reductions last week, with NAB making a noteworthy cut yesterday – a move influenced by recent declines in wholesale funding costs.
Tindall said that although the reductions in fixed rates have been modest, they might signal impending cash rate cuts, prompting other lenders to reconsider their pricing strategies ahead of the next Reserve Bank meeting.
On the deposit side, while some term deposit rates have begun to decline, others, particularly those with shorter terms, maintain interest rates above 5%, Canstar reported.