Westpac says fixing for two to four years offers good value. “We believe the balance of risks lies in the direction of floating mortgage rates rising further over 2013 to 2015 than markets currently anticipate.
“Those who share our assessment, and who are intending to fix at some point, may find it is worthwhile paying the slight up-front cost of fixing now rather than holding off.”
Westpac says fixed rates are likely to rise before floating rates go up. It also argues that getting in early is a good idea as “a rush of people trying to fix at the same time could itself send fixed rates higher.”
