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Thursday, 26 August 2021

This is what's happening with mortgage rates

Mortgage market trends

New mortgage rates were still trending down through to the end of the financial year, with another couple of basis points trimmed off the average mortgage rate on new loans written. 

The general view has been that as the Reserve Bank tapered off its stimulus then mortgage rates might have bottomed out, leading to a surge in buyers fixing their mortgage rates.

But now the taper looks set to be delayed, and this week Westpac began offering a variable rate with a 1-handle, which went against the general narrative.

I thought I'd check in with Chris Booth, CEO at Lydian Finance, to find out what's going on at the coalface. 

The short video can be watched below:


Construction work done increased 0.8 per in Q2, though this is all a bit moot given that half of the population has been plunged back into lockdown in Q3. 

Residential building has now topped out and will likely become a headwind from here on out, stalling the recovery of the Aussie economy well out into 2022.