Westpac switches position

Westpac has changed its view on home loan strategy and now favours fixing.

"Our view has long been that fixed rates are attractive relative to where we think floating rates are heading over the next few years; the question has been one of timing the move into fixed. Recent developments locally and offshore have reduced the chance that rates will fall further from here, which reduces the ‘room for regret’ from fixing today."

"Indeed, in the absence of any fresh downside developments, there is more likely to be pressure for fixed-term rates to rise."

Now is the time to fix