More home loan rate cuts to come

The big question is whether the banks will come under pressure to cut their floating rates too – although brokers report it's possible to get significant discounts on published floating rates.

The market is now pricing in a 2.05% official cash rate (OCR) by October compared with 2.5% now and one to five-year swap rates fell a further 19 to 21 points on Friday.

“From the point of view of the average household, it probably looks pretty good at the moment,” says Darren Gibbs, an economist at Deutsche Bank.

“But you've got to ask why are rates falling – investors are worried about the world they see,” Gibbs says. “It's a pretty dangerous place out there.”