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Housing report: Fixed mortgage rates rising on OCR hike talk
October 16th, 2009Click here to watch today’s video.
Bernard Hickey delivers a housing report in association with ASB on how fixed mortgage rates are rising because of renewed talk the Reserve Bank of New Zealand will have to raise the Official Cash Rate earlier and faster than expected.
Click here to see the interactive swap rates chart.
Tags: Bernard Hickey, Fixed rate mortgage, Interest Rates, Official Cash Rate, Reserve Bank of New Zealand, swap rates
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October 16th, 2009 at 1:31 pm
No need to raise the OCR. Banks are now contolling inflation on their own.
October 16th, 2009 at 9:03 pm
Not at all. Banks have understood that the Courts are going to award the IRD thier taxes and therefore the banks are slugging their customers extra to get their tax money. It was never going to come off their bottom line nor from raising extra capital.
ASB hinted today that it would roll over and make a deal. At the same time raising its rates.
Cynical is what you’d have to say and here in NZ we will have to grin and pay or rather grit our teeth and as usual pay.
October 16th, 2009 at 9:32 pm
C’mon Robert…..
All the signs have been there for a long time…If you watched the video, its all about the swap rates, inflation, and rest of the world printing money and devaluing THEIR currencies..
It would be nice it was the IRD bill, but thats just a red herring.
October 16th, 2009 at 9:36 pm
The Aussies will lead the way
http://www.businessspectator.com.au/bs.nsf/Article/NAB-forecasts-425-cash-rate-by-early-2010-pd20091016-WV8RT?OpenDocument
October 17th, 2009 at 8:30 am
Well, I hope you folks have battened down the hatches and cleared the decks of debt, because this recession is set to run and run.
October 17th, 2009 at 8:26 pm
Agree Shorty, what’s point of changing OCR, banks are ignoring it anyway, and make Bollard look silly.
October 18th, 2009 at 8:35 am
The house buyers are mainly floating their mortgages and trusting that Bollard will stick to his word not to raise rates until late 2010
The banks will then deal the sucker punch – by the time the floaters are paying 8% early in 2010 3, 4 and 5 year fixed terms will be close to 10% and the result will be a serious amount of pain for those who trusted Bollard.
October 19th, 2009 at 7:01 am
hmmm….testing….last post….didnt…
October 19th, 2009 at 7:16 am
Rats….
@The BM: what you are saying is a 2%+ rise in 3~4months, thats insane (no insult intended)…so 3 x 75 basis point rises a year early…way too much…thats hugely agressive and Bollard by nature isnt that agressive…ho hum.
Also I thought “most” ppl were fixed? Im floating but I seem to be in the minority…
This is interesting to watch (though I guess Im in the cooking pot!)…its so like the Great Depression at times, same so called high brows in charge who are buggering it up….ie raise taxes or remove support too early and it will send us back into recession….aka 1931~1932….and what got ppl out of the GD was huge Govn spending that was WW2, that does not bode well.
Whats really interesting is from reading and listening to the “experts” on The Great Depression” is that even today there is no agreement on why and what caused it to be so bad and last so long….did FDR make it worse, better or did he stop it getting really bad? If after the event with all the data available and hindsight there still seems no consensus why are we confident that this time “those in charge” have any more of a clue?
regards