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ARTICLES > The Latest on Interest Rates and Property Trends
The Latest on Interest Rates and Property Trends
(This item is changed regularly - usually monthly to coincide with FORTIfi's monthly client newsletters
or when there's a significant change in New Zealand's financial market).
You can sign up for the FORTIfi Newsletter by using the form at the bottom-left of this page.
The next OCR announcement will be June 14 2012.
This article was updated on May 2 2012. |
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The Latest on Interest Rates and Property. |
 ► The OCR and Interest Rates.
Last week The Reserve Bank of New Zealand's (RBNZ) once again elected to keep the OCR at the current historical low of 2.5%. This all time low has been in place for a year now and it was March 2009 that the OCR was higher than 3%.
Once again, over the past month bank interest rates have remained stable.
So what does that mean for your finances and mortgage?
What you need to do.
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So, what should you do? We're over a quarter of the way through the year. This time last year we were told that the interest rate would have risen by now, but it hasn't. What that partly shows is how difficult it is to predict the financial market. |
For a reminder of what the OCR is, click here. |
That means, it's best to simply follow the best advice we can offer: FORTIfi's position has not changed in all this time. Right now interest rates are at all-time lows and that helps those of us with debt. This is the best time to pay off as much debt as possible.
The decision process to Fix or Float has not changed either. As always, if you value certainty, then fixing can provide that. If you are prepared to take the risk, thinking that rates may go down, then floating is the way to go. As mentioned before, if your mortgage is large enough, then splitting it into two or more components allows you to fix for different periods, and/or fix some and float some.
FORTIfi can assist you in fixing your mortgage and getting the best rate available with most banks. Contact one of our mortgage advisors at info@fortifi.co.nz or phone (09)830-2022.
Remember the biggest impact you can make on saving bank interest costs is to stick to your MortgagePlan or MPower Plan, make those regular lump-sum transfers, and get rid of your mortgage as fast as possible!
For mortgage advice, if you’re looking into a new mortgage, or if you’re wanting to refix your existing mortgage, FORTIfi is here to help.
Click this link to get a FORTIfi mortgage consultant help you with renewing your mortgage or see if you're eligible for a new mortgage, or phone us (09) 830 2022.
 ► The latest on Property
In a recent article in the New Zealand Herald entitled, Houses Selling - and faster a reporter wrote:
"Houses are selling at a rate which hasn't been seen since 2007, latest figures show.
"The number of houses sold around the country last month was up by 25.3 per cent when compared with the same time last year, and was the best monthly result seen since November 2007, according to the Real Estate Institute of New Zealand (Reinz) figures released today.
"Houses are flying off the market quicker, with the median days to sell down 23 per cent - from 46 to 35 days - when compared with February."
While there is some truth to this, we need to be careful that we don't let what is happening in the main centres skew the figures and give an unreal expectation to those of you living in the rest of New Zealand.
For instance, it is true that properties are selling, but it is also true that prices have dropped marginally. www.qv.co.nz reports: "Nationwide residential property values eased slightly in March according to the latest QV index. Despite the slight drop in the last month, values are still up 0.5% over the past three months and 3.0% up over the past year. Values are now 3.0% below the previous market peak of late 2007."
QV.co.nz Research Director, Jonno Ingerson said “the marginal drop in values last month follows a year of slight month on month increases. These increases were driven initially by Auckland and Canterbury but the rest of the main centres have also been increasing over the past few months. It is too early to say if the drop in the latest month represents a change in direction for the market”.
What all that means is that it remains a good time to buy, before the prices track higher. And, there are lessons for those selling; present your home well. Finish off those odd jobs and renovations and your home might be snapped up real quick.
For mortgage advice, if you’re looking into a new mortgage, or if you’re wanting to refix your existing mortgage, FORTIfi is here to help.
Click this link to get a FORTIfi mortgage consultant to help you with renewing your mortgage or seeing if you're eligible for a new mortgage, or phone us (09) 830 2022.
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