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Mortgages

Mortgage Rates Daily Commentary
Monday 9 December 2024  Add your comment
Huge pile of mortgage money on short terms as borrowers wait for interest rate drops; SBS and Kiwibank rates change

While mortgage lending grows most borrowers are shying away from long term fixed rates as the Reserve Bank indicates it has more OCR cutting to do. [READ ON]

 

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Bollard to hold OCR amid faltering retail spending and housing market

With retail spending and the housing market faltering and domestic inflation running below the Reserve Bank's expectations, governor Alan Bollard is likely to leave interest rates unchanged at record lows next week but everybody is expecting a hike soon.

Monday, April 26th 2010, 1:18PM

by Jenny Ruth

A GoodReturns survey of 12 economists showed all are expecting Bollard to leave his official cash rate (OCR) unchanged at 2.5%. The big division of opinion is whether Bollard will start raising the OCR in June or July.

Currently wholesale interest markets are pricing in only about a 40% chance of a June hike but the weight of opinion among economists is picking the OCR will rise in June.

Darren Gibbs at Deutsche Bank says although the domestic sector is slightly weaker than expected, the export sector outlook is clearly stronger, which he regards as positive.

Back in March, Bollard was worrying the wold economy might be weaker than expected but "consensus forecasts of trading partner growth have been revised up moderately at this stage," Gibbs says. "Recent data in the US and Asia suggests that upward forecast revisions will be forthcoming." There is some upside risk of stronger growth in Europe too, he says.

Brendan O'Donovan, chief economist at Westpac, is of a similar view. "Banging the drum about consumer weakness ignores the fact that the main drivers of growth are elsewhere: goods-producing sectors such as agriculture and manufacturing have been taking up the baton."

Commodity prices reached a record in March in both world and New Zealand dollar terms and the currency is close to a 10-year low against Australia's, boding well for exports there, he says.

On the other side of the argument, Christina Leung at ASB Bank says as well as retail spending and housing market weakness, uncertainty over the strength of the recovery in the jobs market is providing a further drag on the household sector while drought in many parts of the company will also have an impact on growth.

"The softer tone of data suggests that, while the economy is recovering, there remain some key uncertainties around the strength of that bounce back," Leung says.

 

« Bollard to hold OCR unchangedInterest rate hike now in sight »

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Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance ▼8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 ▼5.79 ▼5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard ▼7.69 6.69 6.39 -
Heartland Bank - Online 6.99 ▼5.49 ▼5.39 ▼5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 ▼6.69 ▼6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 ▼5.79 ▼5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 ▼5.75 ▼5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - ▼5.89 ▼5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 ▼4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 ▼6.39 ▼6.39
TSB Special 7.39 5.69 ▼5.59 ▼5.59
Unity 7.64 ▼5.79 ▼5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society ▼7.70 ▼5.95 ▼5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.84 5.75 5.69

Last updated: 9 December 2024 10:05am

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