1 00:00:00,080 --> 00:00:04,120 Speaker 1: Poor logic is sensing an incoming rates war interest rates 2 00:00:04,120 --> 00:00:06,040 Speaker 1: that it is with signs that borrows are starting to 3 00:00:06,120 --> 00:00:08,399 Speaker 1: check out the two year, the three year, the fixed 4 00:00:08,480 --> 00:00:11,760 Speaker 1: term deals again, people going a bit long. In January, 5 00:00:11,920 --> 00:00:15,000 Speaker 1: ninety percent of borrow has chose floating or fixed rates 6 00:00:15,040 --> 00:00:17,280 Speaker 1: of six to twelve months. But that is all about 7 00:00:17,280 --> 00:00:21,119 Speaker 1: to change. David Cunningham from Squirrel Mortgage Brokers is with me, David, 8 00:00:21,120 --> 00:00:24,800 Speaker 1: good morning. Hey a right, So what sort of queries 9 00:00:24,800 --> 00:00:26,520 Speaker 1: are you getting at the moment? What are you hearing? 10 00:00:28,600 --> 00:00:32,280 Speaker 2: Oh? Look, it's things have changed dramatically since pre Christmas. 11 00:00:32,280 --> 00:00:34,280 Speaker 2: I know you've had this march down in the ocr 12 00:00:34,479 --> 00:00:37,320 Speaker 2: and people were just holding back waiting for the OCA 13 00:00:37,400 --> 00:00:40,479 Speaker 2: announcement reduction to come, and then as soon as that happens, 14 00:00:40,520 --> 00:00:42,599 Speaker 2: they jump into a short term fixed rate. And that's 15 00:00:42,640 --> 00:00:44,519 Speaker 2: been going on really for the best part of a year, 16 00:00:44,560 --> 00:00:46,960 Speaker 2: where everyone's been in short term rates on the expectation 17 00:00:47,200 --> 00:00:50,440 Speaker 2: that the OCO would come done. So it's come down 18 00:00:50,440 --> 00:00:52,040 Speaker 2: a fair bet already and there's a couple of war 19 00:00:52,120 --> 00:00:54,440 Speaker 2: cuts definitely to come based on what the Reserve Bank 20 00:00:54,480 --> 00:00:57,240 Speaker 2: said to us. So what was sort of seen is 21 00:00:57,640 --> 00:01:00,800 Speaker 2: I wouldn't say, actually I think yeah, in terms of 22 00:01:00,800 --> 00:01:02,920 Speaker 2: a mortgage war, I think what we saw is, you know, 23 00:01:03,120 --> 00:01:05,240 Speaker 2: pre Christmas we were sort of calling out the squirrel. 24 00:01:05,280 --> 00:01:07,440 Speaker 2: We were calling a four ninety nine rate early in 25 00:01:07,520 --> 00:01:10,520 Speaker 2: the new year, and the skimmersh sort of got underway 26 00:01:10,520 --> 00:01:13,679 Speaker 2: with WESPEC going to three four ninety nine with a 27 00:01:13,720 --> 00:01:15,960 Speaker 2: three year term. Then they pulled it a couple of 28 00:01:16,000 --> 00:01:17,679 Speaker 2: weeks later, and then I think am Z the same 29 00:01:17,760 --> 00:01:20,080 Speaker 2: day a full ninety nine for two year, and essentially 30 00:01:20,160 --> 00:01:23,840 Speaker 2: every bank has come to that level pretty much. Look, 31 00:01:23,840 --> 00:01:26,120 Speaker 2: we could see the one year rate go, but but 32 00:01:26,560 --> 00:01:28,560 Speaker 2: I actually don't think there's a war coming. I think, 33 00:01:28,640 --> 00:01:30,800 Speaker 2: you know, we've sort of passed the threshold and banks 34 00:01:30,800 --> 00:01:32,480 Speaker 2: that are now just going to sort of hop around 35 00:01:32,520 --> 00:01:32,960 Speaker 2: that level. 36 00:01:33,080 --> 00:01:34,800 Speaker 1: So do you reckon? People should like, I mean, it's 37 00:01:34,800 --> 00:01:36,960 Speaker 1: not going to get much better than four point ninety nine. 38 00:01:36,959 --> 00:01:39,240 Speaker 1: And I guess the other thing is, what you know, 39 00:01:39,240 --> 00:01:40,959 Speaker 1: do you really want to sit here and for how 40 00:01:41,040 --> 00:01:43,039 Speaker 1: long trying to pick the bottom of the market, right. 41 00:01:43,280 --> 00:01:45,240 Speaker 2: Yeah, yeah, ye, Well, look what we've seen is like 42 00:01:45,319 --> 00:01:47,800 Speaker 2: almost you know, the bulk of customers are now taking 43 00:01:47,800 --> 00:01:53,400 Speaker 2: four ninety nine for two years. I mean I just adapts. Actually, well, 44 00:01:53,440 --> 00:01:56,480 Speaker 2: then the maney where your mouth is. Yeah, so you know, 45 00:01:56,520 --> 00:01:58,600 Speaker 2: i'd be I'd been on set of six month rates 46 00:01:58,600 --> 00:02:00,640 Speaker 2: for the last a year or two or something like that, 47 00:02:00,800 --> 00:02:04,160 Speaker 2: just waiting for waiting, waiting, waiting, waiting, and happened. And 48 00:02:05,080 --> 00:02:07,000 Speaker 2: you know, when you look back over history and you 49 00:02:07,040 --> 00:02:10,359 Speaker 2: can look through from two thousand and ten to sort 50 00:02:10,400 --> 00:02:12,760 Speaker 2: of two thousand, you know, to pre COVID, you know, 51 00:02:13,080 --> 00:02:15,440 Speaker 2: interest rates for one two year terms, we're in that 52 00:02:15,639 --> 00:02:19,000 Speaker 2: four to five percent range for that whole time almost. 53 00:02:19,040 --> 00:02:23,720 Speaker 2: So you know, unless the economy tanks further, which Michael 54 00:02:23,800 --> 00:02:26,160 Speaker 2: just said that it's you know, probably looking a bit 55 00:02:26,000 --> 00:02:29,160 Speaker 2: but better. Even if consumers are still gloomy, you know, 56 00:02:29,200 --> 00:02:31,000 Speaker 2: you're probably going to be in that range, but more 57 00:02:31,120 --> 00:02:33,160 Speaker 2: likely the middle of the range for so one year term. 58 00:02:33,280 --> 00:02:35,960 Speaker 2: You know, so it could be a bit lie, but 59 00:02:36,120 --> 00:02:38,320 Speaker 2: you know, for we you know, Squirrel's views for night 60 00:02:38,600 --> 00:02:40,399 Speaker 2: is a damn good rain two. 61 00:02:40,639 --> 00:02:44,160 Speaker 1: Thanks for it, David Cunningham, Squirrel Mortgage Breakers. To Squirrel 62 00:02:44,200 --> 00:02:44,959 Speaker 1: with Us this Morning. 63 00:02:45,360 --> 00:02:48,239 Speaker 2: For more from the Mic Asking Breakfast, listen live to 64 00:02:48,360 --> 00:02:51,440 Speaker 2: news talks that'd be from six am weekdays, or follow 65 00:02:51,480 --> 00:02:53,040 Speaker 2: the podcast on iHeartRadio.