Floating mortgage rates have fallen but at the same time fixed rates have increased. What should you make of all of this? What are the implications for future home mortgage rates
My preferred fixed term remains one-year fixed at 5.39% or 18 months at 5.79% – and probably splitting the mortgage between both to give two bites of the cherry.
Short term rates have not increased (and are not increasing) so it worries me when I hear everyone saying things like “rates are going up.” To be specific, only long-term rates are going up – and you need to consider your strategy accordingly.
2009
Weighing Up the Costs: Buy Now or Wait for Next Year?
Filed under: Housing Market, Interest Rates, Mortgages, NZ Economy
Don’t get too focused on the absolute interest rate. Simply being able to buy, and buying well, are where you will make money in the property market at the moment.
Mortgage rates are forecast to bottom out around June 2009. Short term rates could get as low as 5.50% with longer-term rates getting down to around 6.00%-6.50%. In my opinion that means taking a six month fixed rate now at 6.50%-6.90% is the best option. In six months you can then look to split your mortgage into multiple fixed rates and spread them over 3-5 year fixed terms
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