Home Loan Rate Report: High CPI prompts further interest rate increases

  • Fixed-term mortgage rates have risen significantly since early 2021 and, despite the recent dip in some fixed-term mortgage rates, we predict more increases over the rest of the year
  • We think it is prudent for borrowers to budget on mortgage interest rates being higher than they are now over the coming years
  • We expect most fixed-term mortgage interest rates will peak within a 7-7.5% range over the year ahead. Floating rates could peak around 9%. However, as is often the case, the outlook is far from certain

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Chris Tennent-Brown

ASB Wealth Senior Economist

Chris has worked as an economist for ASB and Commonwealth Bank of Australia in Sydney since 2005. His work has involved monitoring and forecasting trends in the New Zealand economy, with a focus on drawing implications for financial markets and investments. Chris is passionate about savings issues, and much of his current work is focussed on broadening peoples understanding of investments. Chris obtained a Bachelor of Commerce at Auckland University, majoring in Economics, and prior to joining ASB worked in the funds management industry for Bankers Trust and BT Funds Management. With over 20 years' experience in finance, Chris has also spent several years farming, and was a New Zealand representative cyclist. When not at work, Chris likes to travel, cycle, and spend time with his family and numerous pets.

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