Mortgage rates NZ

2022 - 4 - 13

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Image courtesy of "New Zealand Herald"

'More pain': National blames Govt for OCR, food price hikes; PM hits ... (New Zealand Herald)

The National Party is laying the blame for a major hike in the official cash rate (OCR) and "spiralling" increases in food costs squarely at the feet of the ...

And that is something we can act on." "Rising food prices is a global issue. Kiwis deserve better." Luxon said it was about "half and half" domestic and external factors, and the Government needed to "be smart and rein in spending". Commerce and Consumer Affairs Minister David Clark said the increase in food costs was above general inflation figures and highlighted the role the grocery sector is playing in driving up prices. Ardern said the OCR rate was back to less than in 2017: "It has been historically low." However, she said during Question Time they were concerned for families who were "overleveraged in the market because they may have purchased at a time during historically low interest rates". National Party leader Christopher Luxon said it was difficult to blame all of an 18 per cent rise in fresh produce and 7.7pc food price overall on the war in Ukraine. On food prices, the Government said it was an issue "nearly every country is facing" with Covid-19 related supply chain issues and the ongoing war in Ukraine, and reinforced the need to rein in "super profits of the supermarket duopoly". "New Zealand is in the middle of the worst cost-of-living crisis in a generation. The National Party is laying the blame for a major hike in the official cash rate (OCR) and "spiralling" increases in food costs squarely at the feet of the Government. Fruit and vegetable prices were up 18 per cent in March 2022 compared to the same month the year before.

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Image courtesy of "New Zealand Herald"

Third bank increases mortgage rates after cash rate rise (New Zealand Herald)

The Reserve Bank increased the OCR from 1 per cent to 1.5 per cent yesterday.

"For the housing market, the implications are clear – even though mortgage rates have already been rising again in recent weeks, this process isn't over yet. This also has an impact on our fixed interest rates for home loans," Kelleher said. The new variable rates for the ASB come in from April 27 for new loans and May 4 for existing loans. ANZ announced its floating and flexible home loan interest rates would go up 0.5 per cent to 5.54 per cent and 5.65 per cent (per annum) respectively. ASB will lift its floating mortgage rate from 4.85 per cent to 5.35 per cent and its orbit rate from 4.95 per cent to 5.45 per cent. Its move follows ANZ and BNZ who both lifted their variable rates yesterday soon after the Reserve Bank increased the OCR from 1 per cent to 1.5 per cent.

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Image courtesy of "Interest.co.nz"

What happened Thursday (Interest.co.nz)

A review of things you need to know before you go home on Thursday; more rate rises, housing sales slumped in March, factories expanded, eyes on health ...

As an example we are renovating offices in about 5-6 countries right now and I compare the cost in NZ to for example the US / Italy or India and NZ costs in multiples more it’s - bassically out of control the difference per square meter. That means the TWI-5 is now at 73.9, and and a -70 bps depreciation since this time yesterday. And to all those who bought, leveraged to the eyeballs, since August of last year........ "Costs in NZ are so out of control it’s a wonder anyone can get anything done here. The 90 day bank bill rate is up a very unusual +7 bps at 1.79%. The Australian Govt ten year benchmark bond rate is down -7 bps from this time yesterday, now at 2.98%. The China Govt 10yr is little-changed at 2.82%. And the New Zealand Govt 10 year bond rate is down -4 bps at 3.47% and just below the earlier RBNZ fix for that 10yr rate at 3.48% (down -7 bps) which pre-dated the OCR call. Be great if it was easier to bring people in in order to help drive some costs down and rebalance supply / demand. And property sellers finally converting from auction to 'price by negotiation'. The party is over. The US Govt ten year is now at 2.68% and another down -7 bps since this time yesterday in a growing reversal. The ASX200 is up +0.4% in early afternoon trade. Fund manager Kernel is adding a new KiwiSaver option in addition to its index fund set. The factory sector seems to be doing well, with the March PMI expanding slightly faster than in February. But the overall result was kept up by strong new order inflows. Those 'strong' new orders may just be an over-reaction buy buyers who just want to get their goods and feel they now need to over-order or bring forward orders.

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