Signs of mortgage company rate decreases
Monday August 18, 2008
There are signs that mortgage company interest rates may decrease even without an official rate drop by the RBA, as the HSBC Mortgage Company has lowered some of its fixed rates. While predictions abound that the RBA will have to lower official rates in the very near future, there has been worry that banks and other kinds of mortgage company will not follow suit. This action by the HSBC Mortgage Company points to some institutions clearly hoping for rate reductions in order to prevent further slowdown of the economy.
While the HSBC Mortgage Company may have reduced some of its rates, this does not necessarily mean that any other banks will follow suit. It is possible that it could foster some competition, but every other mortgage company could just as easily decide to remain conservative in its outlook. Many families are hoping that another mortgage company or two might follow suit, but with institutions such as the Commonwealth Bank Mortgage Company refusing to commit to a decision on rate decreases, it seems unlikely that relief will be coming anytime soon.
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