Home loan interest rates at their current levels appear relatively affordable compared to recent history, particularly if your mortgage is on a floating rate. However it is predicted that floating rates will rise as the economy starts to recover and as the above graph shows, the longer-term fixed rates are likely to be a better guide to median-term mortgage affordibility.
The figures used in this graph are for an average-income buyer purcahasing a median priced house with an 80 percent LVR, 25-year mortgage at the floating or five-year fixed mortgage rate.
