Home Loan Rate Report: Long-term mortgage rates lifting

  • We are past the low point for most mortgage interest rates, and long-term rates have been lifting.  Our forecasts suggest some modest upward pressure on all but the near-term mortgage rates over the rest of the year.
  • ASB now expects the Reserve Bank of New Zealand (RBNZ) to start raising the 0.25% Official Cash Rate (OCR) by May 2022 – if not earlier.
  • Taking advantage of the lower rates on offer now, combined with our expectations that mortgage rates will only rise modestly over the years ahead, influence our thoughts on mortgage strategies.

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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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