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Housing Market

Updated NZ mortgage rate forecast for 2022

In last year’s mortgage rate forecast, we predicted rates would drop below 2.00% and stay low, which they did for most of 2021. Our house price prediction wasn't so on the money, but that one comes down to a matter of timing. Here's our latest analysis.

Housing Market

Is it better to fix or float your home loan?

In this article we’re looking at how to pick the right fixed home loan rate term in a rising interest rate environment.

Housing Market

A different truth about house prices

I love property. Early last year I wrote that I thought we were going into the last great property boom based on ultra-low interest rates and the increasing importance of having a home in the post COVID world.

Housing Market

The big difference between buying a home in 2008 and buying a home in 2021

My own experience of two first home buyers 13 years apart shows that servicing hasn’t changed all that much. It's as hard today as it was 13 years ago. But what it doesn’t show is the sizeable part of our population that are locked out of the housing market altogether.

Housing Market

Delay in monetary policy tightening may boost housing

I recently wrote about the end-game being underway for the three decade period of high average house price rises. I still remain of that view, but for now the market retains considerable strength.

Housing Market

Higher interest rates will slow but not crush NZ economic growth

Two week’s ago expectations for interest rate changes in New Zealand took a leap up in response to the June quarter inflation number coming in 0.5% higher than anticipated. This is a very rare event and the signal it has sent is that the pace of growth in our economy is too strong for the Reserve Bank to be confident of containing inflation below 3%.

Housing Market

Mortgage rates on the rise

The world has been printing money for several years, in anticipation of inflation and interest rates eventually rising. Neither of those happened. But the short-term has changed.

Housing Market

Housing market still supported by low interest rates this year

Two weeks ago, I wrote on the theme that young buyers will probably hold back from the residential real estate market until they see older investors returning – then they too will return. Evidence for this has already been shown from my surveys.

Housing Market

House price stability and interest rates

In this article I’m focusing on the idea of debt-to-income ratios. It is likely that they will be a key tool used by the Reserve Bank to meet its new house price stability objective.

Housing Market

What’s happening to Mortgage Rates?

It’s just a little bit odd at the moment trying to make sense of mortgage rates. The mortgage rate signals that borrowers are receiving are somewhat confusing.

Housing Market

Housing and interest rate forecast for 2021

It’s around this time of the year that I take an educated guess at what will happen with house prices and mortgage rates. As I’ve said time and time again, the strongest correlation that exists is between house prices and interest rates.

Housing Market

Honeymoon offers and 1.99%; why it's important to look beyond the headline

If you’re familiar with us, you’ll know that at Squirrel we don’t like to pull punches so here goes. Heartland Bank came out with a staggering mortgage rate of 1.99% fixed for 1-year. Naturally everyone got excited, but what is it actually? Since then, no other banks have followed.