Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Competition Intensifies In Mortgage Sector

12 August 2002

Competition Intensifies In Mortgage Sector


Mortgage rates continue to tighten, according to the latest Mortgage Interest Rate Survey conducted today (12 August) by the Real Estate Institute of New Zealand (REINZ).

REINZ National President, Rex Hadley, said the survey showed margins between lenders narrowed during the month as lending institutions jostled for position in the lucrative mortgage market.

Floating rates for first mortgages ranged in a tight band, between 7.60 to 8 percent, with seven lending institutions moving rates marginally upwards during the month.

Mr Hadley said there could be rate changes downwards following this week’s Reserve Bank statement due on Wednesday.

“Most economists and the markets are picking the Reserve Bank will leave its Official Cash Rate (OCR) unchanged at 5.75 percent this week, largely because of continued weakness in global equity markets, and following on the lead of the Reserve Bank of Australia in maintaining the status quo last week” he said.

With institutions generally pricing their floating rates between 150 to 200 basis points above the 90-day bank bill rate, he said there appeared to be room for some easing, as only five of the 15 lenders surveyed are offering rates less than 200 basis points above the OCR.

“Unless the Reserve Bank makes a surprise move on Wednesday, lending institutions are likely to come under some pressure to lower their floating rates.”

Longer fixed term rates range between 6.75 – 7.20 percent for six months; 6.90 – 7.20 percent for one year; 7.40 – 7.60 percent for two years; 7.59 – 7.85 percent for three; 7.65 – 7.90 percent for four and 7.67 – 8.09 percent for five years.

Mr Hadley did not discount further rate increases later this year.

“Even though the New Zealand dollar has dropped back recently, we note unemployment is at a 14 year-low, retail sales remain strong, and consumer confidence is at an 11 year high. The Reserve Bank is likely to move to meet its mandate of controlling inflation, as the country remains close to its maximum 3 percent inflation target.”

- ends -

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news