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

 

Cairns Lockie Mortgage Commentary

Issue 12 9 July 1999

Welcome to the twelfth issue of the Cairns Lockie Mortgage Commentary. This is a fortnightly electronic newsletter which aims to keep you informed on developments at Cairns Lockie, Mortgage Bankers and the mortgage market in general.

Previous issues of this commentary (and details on our product features) can be found on our website www.emortgage.co.nz

The Money Market

This morning (8am on 9 July) the money markets are at the following levels:

Official cash rate 4.50%

90 day bill 4.72

1 year swap rate 5.16

3 year swap rate 6.36

10 year bond 6.59

Kiwi dollar 0.5255

Fed Increases Wholesale Interest Rates

Last Friday as expected The Federal Reserve raised wholesale interest rates by a quarter of a percentage point from 4.75% to 5.0%. This increase had been widely anticipated and was largely the reason why wholesale interest rates have increased over the past two or three weeks. This increase ap pears to have had little effect on the United States economy. After the announcement, both the S&P 500 and the Nasdaq Composite Indices reached record highs. Consumer confidence is also running at a record thirty year high.

Following the announcement our longer-term bonds rallied but subsequently returned to last week's levels.

Housing Activity Still Improving

According to the July BNZ economic report, May was another good month for dwelling sales with numbers up by 35% from a year earlier. Sales in the three months to May were up by 29.4%. Year ended sales numbers reached 77,666. This was up by 2.5% and the first positive rate of change in this measure since January 1997.

The reasons for this are the low relative mortgage rates together with a small but general improvement in economic conditions.

Cairns Lockie to Provide Sponsorship of the Auckland Collier Cup Team

This is the premier tournament for girls' hockey. We are very pleased to be sponsoring the Auckland team. The competition for this cup is intense and we are hoping the Auckland team will do well. We will provide you with regular updates of their progress.

Securitisation Becoming More Popular

Cairns Lockie, as many of you are aware, obtains its funding through a process called securitisation. This is where mortgage backed securities are sold in the capital markets. It is a very common way of funding mortgages overseas, and is likely to become a popular option here. As reported in the NZ Herald last Tuesday, Westpac has launched its first New Zealand home loan securitisation vehicle to raise NZ$825 million.

Our current interest rates are as follows

Variable rate 5.85%

Two-year fixed rate 7.05

Three-year fixed rate 7.55

Five-year fixed rate 8.15

Line of credit facility 6.25

Equity accelerator 6.25

Cairns Lockie Limited

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Industry Report: Growing Interactive Sector Wants Screen Grants

Introducing a coordinated plan that invests in emerging talent and allows interactive media to access existing screen industry programmes would create hundreds of hi-tech and creative industry jobs. More>>

ALSO:

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO:

Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>

ALSO:

Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>

ALSO:

Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>

ALSO:

Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>

ALSO: