Lenders are continuing to roll out the offers to lure customers with many slashing fixed interest rates.

Canstar Group executive financial services, Steve Mickenbecker, says 32 lenders on Canstar’s database have cut owner occupier fixed rates this month.

He says this is a sign that the market anticipates there will be lower variable rates in the near future.

“The banks reduce fixed home loan rates when their cost of longer-term funding goes down, and that has started to happen following the decline in Australian government bond yields,” he says.

RateCity.com.au research director, Sally Tindall, says even though fixed rates are dropping they are not the most popular option with borrowers.

“The catch is, if you want these fixed rates, you have to be willing to lock up your loan for the next three years, a proposition many customers aren’t keen on committing to at this point,” she says.

She believes the cash rate is now at or near its peak.