Upward Trend In Floating Interest Rates Continues
June 19, 2002
The majority of lending institutions raised floating mortgage interest rates, in the month to May 10, while long term fixed interest rates slightly eased, according to the Real Estate Institute Mortgage Interest Rate Survey, released today.
Five of the thirteen lending institutions lowered three to five year rates by 0.05 to 0.20 per cent, while nearly all of the thirteen institutions surveyed increased their floating rate by 0.25 to 0.35 per cent. Floating rates now range between 7.35 and 7.75 per cent, compared to the 7.10 and 7.50 per cent range as at May 10.
Mr Hadley, National President of the Institute said today, “The slow increase in floating rates witnessed over the last few months shows little sign of abating, and while in each month these rates are raised by a relatively small degree, the range of floating rates available has risen from between 6.24 and 6.70 in January 2002, to a range of 7.35 to 7.75 in the month to May 10. The ongoing easing of long term fixed rates supports the Institute’s view that lending institutions are seeking to encourage customers towards longer term mortgage arrangements.”
“While many institutions eased long term rates last month, essentially it amounted to ‘tweaking’, as the overall range of rates – 8.30 to 8.60 per cent remained unchanged. In the latest period, the change in long term interest rates is more substantial, with three to five year fixed interest rates now ranging between 8.19 and 8.45 per cent.”
As of May 10, one year fixed rates range between 7.30 and 7.85 per cent, compared with 7.00 and 7.85 per cent to April 10; two year rates range between 7.80 and 8.10 compared to 7.80 and 8.15 per cent last month; three year fixed rates range between 7.95 to 8.20, compared to 8.19 to 8.30, per cent last month; while four and five year rates range between 8.29 to 8.45 per cent, compared to 8.29 to 8.60 per cent last month.