Interest rates go higher

Its five year rate is now 6.95% and pundits are predicting mortgages interest rates will be in the 7% region shortly, just when a huge chunk of mortgage holders come off their low 2% and 3% fixed rates. This is where the banks are focusing as the real estate market takes a breather and sales drop.

ANZ has no carded offers below 5% now and the new fixed rates are market highs. Its one year rate is 5.95%, two year rate 6.40% and three year rate 6.59%.

The bank’s special rates, to which conditions apply, is one year 5.35%, two years 5.80% and the rates are effective from today.

ANZ says with high levels of volatility in global markets and increased inflation pressures domestically, there has been a significant increase in wholesale market rates.