Results: Interest Rates

Christmas tree and wreath in a living room
17 December 2020

Record low rates will one day end

Let’s have a look back at the year and what has happened in the area of interest rates, and where things are likely to go.

Young woman sitting on floor with laptop and phone
04 December 2020

Have we all been wrong about interest rates remaining low?

Virtually everybody taking out a mortgage at the moment is fixing their interest rate for a one-year period. The trouble with this...

Modern white house surrounded by trees
20 November 2020

Low interest rates and high house prices

The commonly accepted view is that New Zealand house prices have soared 500% since 1992 because of insufficient construction. This...

11 November 2020

Why interest rates will remain low for a few years - Tony Alexander

Banks lend out about $280 billion to households for housing purchases. But they have funding from households exactly equal to $200 billion. It might pay to stop and think about that number for a moment.

30 October 2020

Central banks are going to keep interest rates low

There are three central banks whose comments and policies are of high importance to interest rate movements and prospects in New Zealand. Most important is our own Reserve Bank, the United States Federal Reserve Board, and the Reserve Bank of Australia.

12 October 2020

Will 11% Mortgage Rates Return?

Over the June quarter of this year the average interest rate paid by someone with a mortgage was 4.2%. This was down from 4.9% one year ago, 7.1% ten years ago, 8.8% 20 years ago, and 15.6% almost 30 years ago. Could we see those high numbers again?

25 September 2020

Fixing one-year highly favoured

In my recent survey, 96% of Mortgage Advisors said that people are favouring the one-year term when fixing their mortgage. The reason for doing so is fairly clear – it is the cheapest rate on offer.