Low long term fixed rates down the track
In the Weekly Overview he says low rates for the likes of the five year term appeared in 1998, 2003 and last year and his best guess on that sort of cycle is 2013.
"So until those low rates come along - after the economy has fallen into a new downturn for a while - I am only going to be thinking about floating at terms out to three years at the very longest.
He says the analysis at this stage says that for the bulk of borrowers looking at still paying off their debt in three years time, there is a slight advantage to taking the three year rate at 7.5% rather than riding the floating rate roller coaster.
"But personally I wouldn't because there is a risk the tightening cycle not only does not start on June 10, but that it is more stretched out than we are currently thinking."
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