Is 2012 a year for lower home loan rates?

Recent press reports have indicated there is a good chance of the RBA droppping rates further this year.

However will the Banks pass on the rate cuts? Possibly not.

Also in the press, Fitch the rating agency, has expressed concerns about the current ratings of the big four banks, mainly as they borrow a lot of their funds from overseas including Europe. If Europe has a squeeze on, this will flow onto our Australian banks.

So there migjht be lower rates, but we are not immune to what is happening in Europe.