The only way is up

Indeed the outlook is pretty bleak. Recent economic data suggests there are a lot of inflation pressures around, which can only mean that the Reserve Bank will keep monetary policy tight and may even increase its official cash rate (and therefore mortgage rates) again when it makes its next announcement on December 6. The past week have been reasonably quiet with few changes that was not the case a week earlier.

A rapid increase in wholesale funding costs forced lenders to raise their rates by some significant margins, in some cases as much as 30 basis points in one hit.

Normally at this time of the year banks make a lot of noise as they compete for business with Spring Campaigns.

This year has been very quiet, and banks are not offering the discounts off carded rates like they did six months ago.