Mortgage rates

Mortgage Rates are Climbers, Not Decliners – Hold on to Your Wallet!

Despite predictions of a decline, mortgage rates are climbing higher than an excited kiwi at the Auckland Zoo! Discover the latest trends and what they mean for you.

If you thought mortgage rates were on a downward spiral, think again! As of January 10, 2025, the average 30-year fixed-rate mortgage has crested to a staggering 7.24%, a jump of 9 basis points compared to just a day earlier. Homeowners and potential buyers alike are feeling the squeeze as the rate has soared nearly 27 basis points higher than this time last year, leaving many to ponder if they should lock in while they can or wait for the decline that experts hinted might be around the corner.

Remember when we thought that mortgage rates would start to drift down like a lazy Sunday afternoon? Well, forget that! The current trajectory has more upward momentum than anyone anticipated. Freddie Mac reports that the average 30-year fixed-rate mortgage is holding steady at 6.93%, which marks the highest figure we've seen since July. This jump is more palpable than a rugby collision, caused largely by rising yields on government bonds that dictate borrowing costs across the board.

With rates climbing higher than a cheeky sheep in a hilly pasture, now might be the perfect time to check your personal finances and strategize for the months ahead. For instance, the average 15-year mortgage rates linger around 6%, compared to a lower average of 5.32% just last December. Yikes! If you're considering refinancing or purchasing property, it may be wise to act before these rates escalate any further.

So what does all this mean for Kiwis and their home-buying aspirations? The consensus among financial analysts is that while the current climate may feel a bit treacherous, it forms part of a natural economic ebb and flow. The sky's the limit – or maybe it’s just your budget that might need some fine-tuning. Fun fact: Did you know that since the start of 2020, mortgage rates have bounced between highs and lows like a pinball machine, so hang on tight, and let’s hope for some favorable winds soon!