In one week ASB’s 5 year fixed home loan interest rate has gone from 5.95% to 6.50%. This shows the vagaries of making interest rate predictions.
The 5 year swap rate, the cost to the Bank of borrowing funds for 5 years currently sits at 4.10% (the 10 year average by the way is 7%).
A lovely margin of 2.40%.
This is an example, as confirmed by the recent reporting season in Australia, that the major banks here have been increasing their margins.