This graph shows you that long-term fixed rates aren't anywhere near being cheap at the moment. Here we have compared the median advertised rates from the major banks over a couple of time periods. A year ago (Aug 2008 - the blue line) rates were well above the five year average and floating and short-term rates were super high.
With the economic crisis the whole yield curve pretty much kept its shape, but fell to historical lows (green line)
Today though the picture is dramatically different with the short end of the curve looking particularly attractive while the longer term rates have risen sharply. We will be watching to see what happens in coming months and whether the shorter end stays low or the longer end falls.
