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...
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...
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...
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.
What happens with negative interest rates?
Two weeks ago, the Reserve Bank made a point of noting that they are actively examining how a negative interest rates policy might work.
The good and bad from the new lockdown
I recently talked about interest rates reducing further. Now, courtesy of the change in New Zealand's Alert levels, the chances have both gone up, and down that this will happen
Rate cuts are likely to be short term only
Margins are below average for terms of three years and longer. This tell us that unless there's a change in borrowing costs, anyone holding out for further falls in rates is taking quite a gamble.