The war in Iraq is pushing interest rates higher and fixed loan rates are following.
Recent trends in global wholesale financial markets suggest would-be home owners should hurry to snap up the low fixed rate deals currently on offer, although whether these trends continue is entirely dependent on the outcome of the US/Iraqi war.
Since the bombs started falling on Bag
Wednesday, March 26th 2003, 5:51PM
by The Landlord
hdad, the yield on US 10-year Treasury bonds have soared about half a percentage point from what was their lowest level since 1958. The market is betting that the US will quickly win the war, clearing the way for the US economy to rebound.
Where US bonds go, so the rest of the world’s wholesale markets follow.
"At the moment, there’s growing confidence that the war will be reasonably quick and contained," ASB Bank chief economist Anthony Byett says.
"What we’ve seen is the removal of the risk premium that’s built up in the last few weeks. If there’s a quick resolution to the war, you will see the fixed rates in New Zealand go up reasonably quickly."
