The 7.1 magnitude earthquake that hit Canterbury and the collapse of South Canterbury Finance last week eliminates any remaining chance of a September Official Cash Rate (OCR) hike according to economists. To find out what this means for borrowers click here.
The earthquake has even rattled mortgage rates heralding a turning point to the current trend of a flattening yield curve which is explained in this graph.
We also look at SBS Bank’s mortgage book which took a hit in the June quarter after deciding not to pass on rising wholesale interest rates to its customers.
Mortgage rate movement this week saw nine lenders reduce two and three-year fixed rates in a modest fashion with a couple shaving off a mere basis point.
| « Pause in the OCR expected till March 2011 | Floating rates unlikely to rise anytime soon » |
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