Mortgage rates

PHOTO: FILE

As mortgage interest rates continue fluctuating, ANZ economists recommend homebuyers consider locking in longer-term rates. Although mortgage rates have dipped in response to recent OCR cuts, global financial pressures may soon stabilize or increase these rates. During October, floating rates decreased alongside the OCR, yet the stability of two-to-five-year rates suggests a slowing decline. With global long-term rates rising, experts warn that New Zealand’s mortgage rates may not decrease further, despite competition among banks to attract borrowers.

Most people refixing their home loans at the moment are now fixing for six months.

ASB and Infometrics highlight that while OCR cuts influence interest rates, retail rates often reflect market conditions and competitiveness. This means rates might stabilize sooner than expected, prompting caution among homeowners regarding future choices.

SOURCE: RNZ