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Here is my latest forecast for NZ mortgage rates. Although short term mortgage rates have increased, long term rates continue to fall due to a weaker-than-expected economy

The next Reserve Bank OCR announcement is on 29th July so I thought I’d line up a few graphs and talk about what might happen. We are sure living in interesting times!

The Reserve Bank is going to have to keep mortgage rates low to prevent a collapse in consumption and the flow on impact on the economy. In my opinion we are in for a sustained period of low interest rates

Short term fixed mortgage rates have started to increase in anticipation of a June increase in the Official Cash Rate which now looks almost certain. Some of the key factors behind this are a lower unemployment figure and strong commodity prices signaling that the economy is recovering.  The RBNZ has always talked about increasing rates

Finally everyone is starting to “get it.” Mortgage rates are going nowhere fast, so there is great value in sticking with floating and short term fixed rates