Homeowners in rush to fix their interest rates

Posted by LC Team, Wednesday, June 24, 2009

HOMEOWNERS are rushing to lock in their mortgage rates, fearing interest rates have bottomed and will rise.

news.com.au

2 Comments

Steve June 24, 2009

Why would anyone fix now??? the rates are terrible, there would be about 5 x .25 rate increases before you reach the fixed rates that are on offer, crazy isn’t it…

Human nature I am afraid… they lock in near the top (fear it will go higher) and go variable near the bottom (hoping the low rate will last for ever)… we have always encouraged our clients to be contrarian i.e. if everyone is fixing then go variable and vice versa.