Here are the key things you need to know before you leave work today.
BNZ AND SBS RAISED HOME LOAN RATES TODAY
Both banks announced a range of variable and fixed mortgage rate increases. For BNZ it was interesting that they didn't pass on the full 25 bps hike except for their TotalMoney product. The other lesser rises are for products they were already above the market on. However, they did reduce their three year fixed rate to a very sharp 6.29%, the lowest of the main banks. But not as low as SBS who also raised rates today across the board. The interesting feature from SBS is that even after their rises, they are still comprehensively the bank with the most lowest home loan rates.
HOME OWNERSHIP RATES SLIP ...
Census figures released today show home ownership rate for all adults falls below 50% for first time; home ownership rate for under 40s slumps to 22%.
... BUT HOUSEHOLDS GETTING RICHER
RBNZ data out recently shows net household financial assets reach highest level ever in 2013. The figures for the 2013 calendar year show that total household financial assets (not including house values) rose in dollar terms by the most ever - $25.902 billion - and by the highest in percentage terms (10.8%) since 2006, to reach a new high of $265.3 billion.
DORCHESTER BUYS OXFORD
Dorchester Pacific (remember them?) has acquired fellow finance company Oxford Finance (remember them?) for about $12 million, almost doubling their loan book. Both these finance companies are survivors, both focused on car finance, and both no longer take deposits from the public.
RENTS RISING
The median cost of renting a 2 br flat in New Zealand reached a record $300/week in February, pushed higher by rent spurts in Auckland and Wellington. The median cost of renting a 3 br house is unchanged at $360 per week, although there was yet another jump in Christchurch to $450 per week. Still that is below Auckland's $530 and Wellington's $500/week for a 3 br house.
BENEFIT RATES RISING
The Government confirmed today that almost all benefit rates will rise on April 1 by 1.38% matching the rate of inflation. However, superannuatants will get a rise almost twice as much, a 2.66% rise to keep their payments at 66% of the average wage.
PRODUCTIVITY PUZZLE
The 2013 multifactor productivity data is out today (although it is only for the year ending March 2013) and it reveals a bit of a continuing puzzle. We continue to have strong labour productivity, but capital productivity is still negligible. If only our capital investments were as productive as our workers ...
WHOLESALE RATES
Swap rates are showing more rises today with the curve steepening. There was no change in the one and two year terms but the three, four and five year terms rose 4 or 5 bps today. The 90 day bank bill rates was also up again today at 3.10%.
OUR CURRENCY
The NZD is has held on to all the recent gains and it is ending today at US85.6c and A94.3c and the TWI is at 79.7.
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