Home Loan Rate Report: A balanced approach

  • We expect floating and short-term fixed mortgage interest rates to remain around current levels for the rest of 2018, with rates to drift up prior to RBNZ hikes from August 2019.
  • The tick-shaped mortgage borrowing curve and our expectations of a mild RBNZ tightening cycle suggest that the 1 to 2-year part of the mortgage curve should continue to offer good value.
  • There is the risk that mortgage interest rates move up more quickly and significantly than what our forecasts currently assume.  Borrowers who place a high premium on certainty and stability may want to consider fixing a portion of their loan for longer terms.

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Kim Mundy


Kim focuses on the subjects that have the ability to impact most people daily - the housing market, mortgage interest rates and inflation. She forecasts, analyses and provides insight into what these topics mean to readers: the pros and cons for particular mortgage rate options, housing affordability, or how to prepare for inflation. Kim is the author for ASB's Home Loan Rate Report, Home Economics and Housing Confidence Survey.

Kim joined ASB in early 2015 after working as an Economic Consultant. She also interned with the New Zealand Treasury while completing her BA/BCom (1st class honours) in Economics, Statistics and Politics.

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