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Mortgage Rates Daily Commentary
Wednesday 8 April 2020  Add your comment
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Home affordability holds up

Housing affordability slipped only marginally in the September quarter after showing its worst decline in 7½ years in the previous quarter.

Monday, October 14th 2002, 7:10AM

by Jenny Ruth

Housing affordability slipped only marginally in the September quarter after showing its worst decline in 7½ years in the June quarter, according to the latest AMP Banking/Massey University report.

In the latest quarter, a small rise in mortgage interest rates was offset by a slight drop in interest rates which meant houses nationwide were just 0.1% less affordable than in the June quarter. But houses were 4.4% less affordable in September than a year earlier.

The declines in affordability are modest in the context of the heightened activity in the housing market. The survey notes house sales were up 21.1% in the September quarter and for the year ended September they were up 31%.

"Given the sales activity, one would expect prices to be going through the roof, and certainly some real estate agents would have us believe that is the case," says Graham Crews, senior lecturer in real estate at Massey.

"But the bulk of the middle housing market is stable and what we’re seeing is more a price recovery than a speculative bubble appearing," Crews says. He notes that house prices nationwide rose 5.1% in the last 12 months which "appears relatively modest and is good news for home buyers."

As one would expect, home affordability has fallen most in Auckland, down 0.8% in the September quarter and down 10.1% in the year ended September. The median house price in Auckland rose 10% in the 12 months ended August.

AMP’s head of retail banking Michael Guggenheimer says home loan interest rates are expected to remain stable for the rest of the year, signaling ongoing strength in the market.

Massey prepares this quarterly report for AMP Banking combining data on house prices, mortgage rates and average weekly earnings.

Percentage Change in

Home Affordability

In the last quarter

Percentage Change in Home Affordability

in the last 12 months

Region

Improvement

Decline

Improvement

Decline

Northland

-5.5

-

-

5.9%

Auckland

-

0.8%

-

10.1%

Waikato/Bay of Plenty/ Gisborne

-

2.3%

-

0.5%

Hawke’s Bay

-

1.8%

-

6.5%

Manawatu/Wanganui

-

7.6%

-

6.4%

Taranaki

-

0.5%

-

7.9%

Wellington

-

1.4%

-

1.8%

Nelson/Marlborough/

Kaikoura

-3.1

-

0%

0%

Canterbury/Westland

-

7.2%

-

4.8%

Otago

-

3.5%

-3.3%

-

Southland

-9.5

-

-20.6%

-

New Zealand

-

0.1%

-

4.4%

AMP Banking Home Affordability Survey

« Commission to investigate KiwibankMBA's Tucker warns legislation may be inevitable »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.55 3.89 3.99
AIA Special - 3.05 3.39 3.69
ANZ 4.44 3.55 3.85 4.49
ANZ Special - 3.05 3.35 3.99
ASB Bank 4.45 3.55 3.89 3.99
ASB Bank Special - 3.05 3.39 3.69
Bluestone 4.44 4.44 4.29 4.34
BNZ - Classic - 3.09 3.35 3.69
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.75 4.10 4.55
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.15 3.15 3.19
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Lender Flt 1yr 2yr 3yr
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.95 3.09 3.50
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora ▼4.43 ▼3.55 ▼3.85 ▼4.14
Kiwibank 4.40 3.84 4.14 4.40
Kiwibank - Capped - - - -
Kiwibank - Offset 4.40 - - -
Kiwibank Special - 3.09 3.39 3.65
Liberty 5.69 - - -
Lender Flt 1yr 2yr 3yr
Napier Building Society - - - -
Nelson Building Society 4.95 4.09 4.15 -
Pepper Essential 5.18 - 4.98 4.98
Resimac 4.50 ▼3.49 ▼3.39 3.94
RESIMAC Special - - - -
SBS Bank 4.54 4.85 5.05 5.49
SBS Bank Special - 3.09 3.39 3.69
The Co-operative Bank - Owner Occ 4.40 3.25 3.45 3.69
The Co-operative Bank - Standard 4.40 3.75 3.85 4.19
TSB Bank 5.34 3.89 4.15 4.49
TSB Special 4.54 3.09 3.35 3.69
Lender Flt 1yr 2yr 3yr
Wairarapa Building Society 4.99 3.95 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - 3.09 3.39 3.69
Median 4.59 3.55 3.85 3.99

Last updated: 8 April 2020 8:55am

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