Mortgage Interest Rate Increases Gaining Pace

April 16, 2002

Mortgage Interest Rate Increases Gaining Pace - REINZ

Mortgage interest rates are on the rise, with lending institutions increasing their floating and fixed mortgage interest rates. Interest rates have risen an average of 0.50 – 0.60 per cent across the board in the month to April 10 2002. Ten of the sixteen institutions surveyed increased their floating rate by 0.50 per cent and the majority of lenders raised the fixed rates on offer, according to the Real Estate Institute Mortgage Interest Rate Survey, released today.

Mr Rex Hadley, National President of the Institute said today, “The overall increase in rates is gaining pace. The two previous months to this survey saw interest rates rise by between 0.10 to 0.30 per cent, whereas the majority of institutions raised rates by around 0.50 to 0.60 percent in the latest period. In addition, floating rates are also rising after a relatively long period of stability.”

Floating rates now range between 6.34 and 7.20 per cent, compared to the 6.24 and 6.70 per cent range as at March 10.

As of April 10, one year fixed rates range between 6.75 and 7.65 per cent, compared with 6.10 and 7.00 per cent to March 10; two year rates range between 7.50 and 8.03 compared to 6.95 and 7.65 per cent last month; three year fixed rates range between 7.95 to 8.31, compared to 7.40 to 8.00 per cent last month; while four and five year rates range between 8.30 to 8.60 per cent, compared to 7.89 to 8.30 per cent last month.

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