Why are the Banks dropping their Mortgage Rates?

Discussion in 'Markets & Economies' started by dickmojo, Aug 9, 2011.

  1. dickmojo

    dickmojo Member

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    So why do you guys think the Banks like Westpac and Commonwealth are reducing the interest rates on their mortgages independently of the RBA?

    Maybe a lot of housing investors are getting crunched by margain calls in the stock market and are set to come under mortgage stress and be forced to liquidate.

    Idk why its happening, but this whole situation is starting to feel like the "quickening" in the Highlander movie. Heavy shit is starting to go down.
     
    dickmojo, Aug 9, 2011
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  2. Loxmyf

    Loxmyf Member

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    There's already a decent conversation happening on this other thread
     
    Loxmyf, Aug 9, 2011
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  3. Yippe-Ki-Ya

    Yippe-Ki-Ya New Member

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    The reason the banks are doing this is because they know that in all probability the variable rate will drop a lot more and they want people to NOT enjoy these lower rates, so prefer to lock them in to higher fixed rates
     
    Yippe-Ki-Ya, Aug 9, 2011
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  4. Guest

    Guest Guest

    [youtube]http://www.youtube.com/watch?v=Z0GFRcFm-aY[/youtube]
     
    Guest, Aug 9, 2011
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  5. alor

    alor Well-Known Member Silver Stacker

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    they are told to do so?
     
    alor, Aug 9, 2011
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  6. Auagau

    Auagau Active Member

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    Stimulate growth, prop up the housing market just a bit longer, anticipating high inflation
     
    Auagau, Aug 9, 2011
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