How low do you think interest rates will go next year?
The news only talks about rate cuts these days, but as an ordinary consumer, I wonder when we’ll actually feel the effect in daily life. I need to refinance my loan, but I can’t figure out the right timing. I’d appreciate it if you could share your predictions carefully.
10 answers
Trying to time it usually fails. Last year I saw a 0.3% difference and held out for six months, only to end up worse off. If you're going to switch, just start by comparing the current terms.
Got a source?
The real problem is that deposit rates fall faster than interest rates are cut lol. Loan rates come down slowly, but deposit rates drop in an instant.
You need to start by calculating the early repayment fee. I thought I was coming out ahead by switching to a lender with a rate 0.5% lower, but once I added up the fee, stamp tax, and setup costs, it took a full year just to break even. Compare the 3-year total cost in Excel and then decide. This is genuinely the most important part.
I disagree. If you just sum it all up with “can’t predict,” why even ask? lol I’m expecting a gradual rate cut through the first half of next year. My basis is the trend in inflation indicators.
Nobody here can predict interest rates lol everyone's just guessing
Last year around this time, all we heard was “prices will drop next year,” but in reality they stayed the same for over half a year. I don’t trust the news anymore—I just crunch the numbers on a calculator as I go.
Oh, I didn't know this.
Well, I don’t think a big rate cut is likely next year either. Won’t they be held back by the exchange rate and housing prices? If you design a refinancing plan based only on expectations of a rate cut, you might just end up wasting money on fees.
Interest rates are already priced into the market, so by the time the news breaks, it's often already over. If you move based on the news, you're always one step behind.