Fixed mortgage interest rates begin to firm

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Summer may have just started, but it maybe the end of the golden weather for fixed term mortgage rates.

Tuesday, December 18th 2001, 7:23AM

As a direct result of the Reserve Bank's easing of the OCR on November 10, all the lending institutions surveyed in the most recent Real Estate Institute of New Zealand mortgage interest rate survey have lowered their floating rates in the month to December 10.

The majority of lenders have dropped rates by 0.50%. Having remained completely stable for the month to November 10, floating rates fell by between 0.10% and 0.55% to now range between 6.24% and 6.90%, compared to 6.34% and 7.20% last month.

Conversely, fixed rates began to rise over the same period, having eased in the previous two consecutive months.

Real Estate Institute president Rex Hadley says that while significant changes had been made in fixed rates, with rates dropping by up to 1.10%, it appears the opportunity to capitalise on lower long term interest rates appears to be passing.

"Perhaps we are seeing the end of the golden weather in terms of fixed interest rates?"

"I cannot stress enough that one month of firming rates does not constitute a trend, it is perhaps timely to warn homeowners that they should be careful to not to focus solely on trying to pick the absolute bottom of the interest rate market.

"While interest rates is obviously one of the key issues, it is vital that lenders chose a mortgage provider that also provides the best mortgage products and services. For a full table of all the latest rates go to Good Returns'Rates Table Here.

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