All posts by Jason

Bank Lending in August

Figures out from the Reserve Bank show Bank lending in August has declined from $6.1Billion in August 2016 to $5.1Billion in the same month this year.  Therein a major reason why price growth and the number of sales have stalled in Auckland.

At its meeting last week the RBNZ left the cash rate on hold.

Sales in the Auckland Property Market Slump

Sales figures  for April and May showed sales fell by 2,381 to 5,736, a fall of near 30% on the same period a year ago.

Today Barfoot and Thompson revealed their numbers for June which showed the average price fell 3.1 percent to $913,606

This is up a meagre 0.6% on June a year ago when their average price recorded was $908,343.

OCR Remains @ 1.75%

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent. No immanent sign of a rate hike either with the following…..”Monetary policy will remain accommodative for a considerable period.”

ANZ and Westpac have tweaked up mid and long term fixed interest rates by 0.10% to 0.20% this week.

OCR Held @ 1.75%

The Reserve Bank yesterday left the Official Cash Rate (OCR) unchanged at 1.75 percent and presented an outlook of remaining on hold for some time.

The Banks on the other hand, to protect profit margins, have been raising interest rates “out of cycle”  ANZ has raised floating rates twice this year despite no movement in the OCR.

OCR Held @ 1.75%

The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 1.75 percent.

The recent moderation in house price inflation was noted reflecting loan-to-value ratio restrictions and higher mortgage interest rates.

The announcement seems to leave open the possibilty of a lower OCR given international “uncertainties”.

ANZ Raises Fixed and Floating Rates

ANZ has today raised rates across the board except for the 6 month fixed rate.  Against a backdrop of a static 90 day bill rate and OCR they have also taken the opportunity to raise their Floating Interest Rates by 0.10%.

Interesting ANZ desribes the home loan interest rate moves as “making changes” as opposed to “raising rates”.

ASB Leads The Way With Interest Rate Rises

ASB are out today with its 2nd series of fixed interest rate rises in the past 3 weeks. The floating rate also gets a tweak up 0.10% despite the OCR cut a week ago.

3 years fixed up 0.40%

4 years fixed up 0.60%

5 years fixed up 0.50%

These are big moves over a 3 week period highlighting the benefit of staying in close touch with your broker if your not following the market yourself.

OCR Trimmed To 1.75%

As was widely anticipated the OCR was trimmed by 0.25% to 1.75% this morning.

Recently swap rates have been increasing. The 5 year swap rate was 2.32% back in late June, as at today its 2.72%.  This suggests an increased likelyhood of fixed interest mortgage rates rising.