Yesterday Federal Treasurer Wayne Swan says a rise in interest rates in Australia is "obvious" because they are sitting at 49-year lows. The Herald Sun reports.

Financial markets are already predicting the bank's official cash rate of three per cent will rise to four per cent by the middle of 2010, prompting lenders to lift mortgage rates in an election year.

In the last couple of months, this fear has rushed homeowners to lock in their mortgage rates; fearing interest rates have bottomed and will rise.

Melbourne Housing Affordability

From 1960 until 1987 the median Melbourne house price was between 3.7 to 4.5 years wages. The really good old days. Loan based on One income, no credit cards, no mobile phone bills for your kids and everyone drove a Holden, (or a Ford). After 25 years the loan was paid off.