Over the past six weeks our financial markets have been particularly volatile. Most people are aware of the falls in the world share markets due to the deepening European crisis but other markets have reacted as well. Our currency, against the USA, has dropped from around 82 cents to around 75 cents today. Similarly interest rates have dropped as well. Ten year government stock rates have moved from just over 4.0% to around 3.4%. This has seen some further competition in the shorter end of the prime mortgage market. The markets are telling us that economic conditions are going to be quiet and so lower interest rates will be with us for longer. The budget is unlikely to affect this outlook at all.
Sourced from General Finance Mortgage Commentary