New data shows steep declines in new mortgage lending

The data, included in two new data series published by the Reserve Bank for the first time on Friday, showed total new lending secured by mortgages was $4.89 billion in April, down from $5.69 billion in March and from $6.35 billion in April last year. The total in April 2021 was $8.88 billion.

“This data will add to the wide range of information that is available to support the analysis of the New Zealand financial system and understanding the impact of monetary policy on new lending occurring every month,” RBNZ said when it announced the new tables.

The central bank raised its official cash rate (OCR) to 5.5% on May 24 from 5.25%  on April 5. It has raised the OCR from 0.25% in October 2021.

Of the new mortgage lending in April, 79.5% was at fixed rates with one-year terms the most favoured – owner-occupiers and property investors fixed $1.46 billion for one year.