Mortgage experts believe home loan rates have bottomed out.

Despite intense competition between lenders and historic low interest rates from the RBA, the forecast is for mortgage rates to remain as they are until the economy begins to bounced back from its lethargy.

Finance experts are expecting the RBA to keep cash rates on hold at 2 per cent until the end of the year. Early 2016 may see a small rise.

For those who lock in their mortgage interest repayments the savings could be huge.

“These are historically low rates,” said Hans Kunnen, a senior economist with St George Bank. “You may get a slightly better rate, but in the picture of a 10-year commitment these are pretty darn good.

“Neither should you beat yourself up today if rates go down by, say, another five basis points.”

Fixed rates may still fall as they are not determined by the cash rate. Instead, they tend to follow wholesale rates in the international markets.

Variable rate deals have fallen below four per cent. One-year fixed rate deals have been found as low as 3.49 per cent.

The uncertainty of interest rates is reflected in new data from Australian Finance Group (one of the nation’s largest mortgage broking firms). It revealed that 14.2 per cent of new borrowers in June fixed their home loan, compared with 15.2 per cent in May.

Rates may go lower, but there’s not a whole lot of room to drop; any rate cut (if indeed there are any at all) are likely to bounce back soon.

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