Zippy Financial Zippy Financial

When Can We Expect Fixed Rates to Drop?

The past few months have seen interest rates on fixed home loans deliver more ups and downs than a rollercoaster.

As recently as April 2023, several lenders were starting to cut their fixed rates. Fast forward to July and the major banks – NAB, Westpac, ANZ and the Commonwealth Bank 0 have all upped their fixed rates.

Now you won’t find a fixed rate below 6% among the big four banks.

But Aren’t Interest Rates Expected to Fall?

Homeowners battling high rates are generally being urged to “hang in there” because interest rates are expected to slide down from their current highs over the next 18 months.

Westpac is predicting the Reserve Bank’s cash rate will drop to 3.85% by the end of next year. Better still, NAB is anticipating the cast rate could dip to 3.10% by late 2024.

So, Why Are Fixed Rates Rising Then?

Some lenders are stepping up their fixed rates because they believe rates may go higher before the trend lower.

NAB and Westpac are both tipping the cash rate, currently sitting at 4.10% could go as high as 4.60% by the end of the year. Over at the Commonwealth Bank, the expectation is for one more rate hike, taking the cash rate to 4.35% with a chance the cash rate may ratchet up to 4.60%.

This can be confusing, but the main point is that the prospect of rates heading higher before they head south again is a key factor driving some fixed rates higher.

What Should You Do?

The first step is to bear in mind that forecasts are just that – predictions. Not even the banks have foolproof crystal balls.

And the recent news that inflation slowed in the June 2023 quarter, with the quarterly price rising being the lowest since September 2021, could see the Reserve Bank ease back on the interest rate dial. It could even bring fixed rates back down.

It is also worth pointing out that not every lender is lifting their fixed rates.

A few smaller lenders have trimmed their fixed rates, with some still offering rates below 6.0%.

That is why it is so important to get in touch so we can help you explore a wide range of lenders and loan products.

Frequently Asked Questions

Why have fixed rates been fluctuating recently?

Fixed rates have been on a rollercoaster ride, especially among the major banks. As of April 2023, some lenders started to cut their fixed rates, but by July, the big four banks increased their fixed rates.

Are interest rates expected to fall in the future?

Yes, homeowners are generally advised to “hang in there” as interest rates are expected to decrease over the next 18 months.

Why are some lenders increasing their fixed rates?

Some lenders are increasing their fixed rates because they believe that rates may go higher before they start to trend lower.

What are the banks’ predictions for the cash rate?

NAB and Westpac predict that the cash rate could go as high as 4.60% by the end of the year. The Commonwealth Bank expects one more rate hike, taking the cash rate to 4.35%, with a chance it may go up to 4.60%.

How did the recent news about inflation affect interest rates?

The recent news that inflation slowed in the June 2023 quarter could lead the Reserve Bank to ease back on interest rates, potentially bringing fixed rates back down.

What should homeowners do amid these rate fluctuations?

Homeowners should explore a wide range of lenders and loan products to find the best rates. Locking in your loan rate can bring certainty to your budget.

Your Next Step 

Locking in your loan rate can bring certainty to your budget and eliminate the stress of the rollercoaster rate ride.  

If you are not sure whether to go variable or fixed – or a combination of both – get in touch to see how the numbers stack up for your situation.

Phone: 1300 855 022


Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business. 

About the Author:   

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.   

Connect with Louisa on Linkedin.   

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).

Disclaimer:This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial. 



Comparison Rate calculated on a secured loan amount of $150,000 for a term of 25 years. WARNING: This Comparison Rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different Comparison Rate. Fees and Charges Apply. Terms and Conditions are available on request.