Mortgage rates have hit their lowest points in the cycle, according to ASB economists, and despite the recent outbreak of Covid, the next move is on the rise.
Wednesday, September 15, 2021 9:36 AM
The Big Four have compiled the latest mortgage rate reports, reiterating that mortgage rates will rise regardless of the blockade.
“Despite New Zealand’s recent August recession in Covid-19, we continue to believe it is above the lowest interest rate levels,” the bank’s team said.
Comments come as Big 4, banks try to raise rates in the midst of a blockade.
TSB is the latest lift Fixed period of 18 months to 5 years this morning..
“Fixed-term mortgage rates have risen beyond 2021, and our forecasts suggest that mortgage rates will rise further for the rest of the year. The long-term outlook is mortgages. That’s why we continue to anticipate higher interest rates, including. “
The ASB predicts that the official cash rate will jump from 0.25% to 1% in the next six months and to another 1.5% by the end of next year.
Borrowers continue to face the dilemma of fixing longer-term fixed rates or short-term rollovers.
“If the current uncertainty is over, the prospect of a sharp rise in OCR and mortgage rates over the next year could undermine short-term rolling,” the ASB said.
It said longer-term fixation “provides interest rate certainty at a slightly higher cost.”
“Now, for those who want the certainty of this long-term interest rate, the fixed costs of two to five years are still very low compared to the last two decades,” said the ASB team, including Chris Tenent Brown. ..
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Mortgage rates have fallen: ASB
Source link Mortgage rates have fallen: ASB