Two of the most important indicators to understand where short term home loan rates are sitting and where they may head are the official cash rate and the 90-day bank bill rate.
The graph on the right, NZ short-term rates, shows that the OCR has been flatlining at 2.50% recently and 90-day rates have stayed pretty static.
This indicates direct costs for funding short term home loans are stable and interest rate changes unlikely.
This second graph looks at a range of swap rates for longer terms.
These have been drifting higher which suggests home loan rates for equivalent terms may move up too.
