Results: New Zealand Economy

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...

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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...

Toy house surrounded by silver coins
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 Z...

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?

08 October 2020

House prices expected to rise

For those that have recently become homeowners, it will be important that house prices don’t drop. Many people have purchased using a low deposit and if house values drop, these purchasers could find themselves in an adverse equity position.

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.

09 September 2020

Structural falls in interest rates are almost over

You might think that as an economist I tell people what I think is going to happen. There are certainly elements of that, and generally that is what people look for. But the way to do this is remind people about the long-term underlying forces in play.