Mortgage Basics
Opinion
TLDR
TLDR; by Luminate
The cold and rain arrived properly this week, and the market felt much the same, a bit heavier, a bit less certain, and harder to read at first glance. Underneath it though, rates kept edging higher and inflation stayed stubborn enough to keep everyone watching closely.
Rate changes
- BNZ lifted rates again this week
- 1 year up to 4.65%
- 18 months up to 4.85%
- 2 years up to 5.09%
- Short-term fixed rates remain the sharpest in market
- ASB and Kiwibank around 4.59% for 1 year
- Westpac sitting higher on longer terms
Inflation
- Household inflation stayed at 3.1%
- Still just above the Reserve Bank target band
- Quarterly inflation came in at 0.9%
- Electricity and petrol remained key inflation drivers
- Household costs are still not easing as quickly as hoped
- Sticky inflation is helping keep fixed rates under pressure and OCR timing remains firmly in focus.
Like much of the country this week, the market turned colder without much ceremony. A few bank rate moves, firmer inflation data, and softer sales numbers were enough to shift the tone, even if nothing dramatic happened on the surface. The overall feel is still cautious.
Disclaimer: This article is general market commentary only and is not financial advice. Property markets, lending criteria, and interest rates can change quickly, so always do your own research and seek advice based on your own circumstances before making financial decisions.
