Westpac made the first mortgage rate movements for the week hiking its one-year rate by nine basis points yesterday to 6.29% which is the median rate for the major banks. It also upped its one-year capped rate by 20 basis points to 6.55%.

Southern Cross Building Society has also increased its one and two-year fixed rates by 20 basis points today. Its new rates are still well below the median rates for these terms for non-bank lenders.

In mortgage rates news the economists reviewed their Official Cash Rate predictions after Dr Bollard's speech last Friday where he said "it is possible there could be some meaty chunks to the upside".

We also have a graph this week showing that one-year fixed interest rates have risen on average 69 basis points, for the major banks combined, since its lowest point in the past year (July 2009).

The graph looks at what movements each bank made with fixed interest rates since the start of last year.

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