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

 

Cairns Lockie Mortgage Commentary

Welcome to the fifteenth 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 can be found on our website http://www.emortgage.co.nz (and our second gnarly mortgage calculator at http://www.emortgage.co.nz/calculator.htm)

The Money Market

This morning (8am on 20 August) the money markets are at the following levels:

Official cash rate 4.50%
90 day bill 4.75
1 year swap rate 5.53
3 year swap rate 7.08
10 year bond 6.93
Kiwi dollar 0.5295


Property Prices Bounce Back
According to Quotable Value New Zealand, most areas of the country have seen a firming in residential property values. Prices have, on average, increased by 2.7% in the six months to June 1999. This was after falling 3.7% in the six months to December 1998. The Wellington area has lead the inc
rease followed by Auckland. The worst performing areas were in the deep south, namely Dunedin and Invercargill. The house price changes for the six-month period to the end of June are detailed below:


Index % change
Porirua 6.5
Upper Hutt 6.1
Lower Hutt 4.3
Wellington 4.3
North Shore 4.0
Auckland 3.4
Franklin 3.4
Manakau 3.2
New Plymouth 2.5
Palmerston North 2.4
Waitakere 2.3
Whangarei 1.9
Nelson 1.7
Christchurch 1.7
Napier 1.6
Hamilton 0.8
Dunedin 0.8
Invercargill -0.8


House Sales Volumes Improve

House sales volumes are showing a large improvement on last year. Barfoot and Thompson have recently published their figures on housing sales confirming this trend. They show:

Sales July 1999 621 properties $179,920,759
Sales July 1998 437 properties $115,073,940

12 months to July 1999 7179 properties $2,050,205,085
12 months to July 1998 5639 properties $1,605,538,554


Fixed Rates Move
Over the past week all financial institutions have increased their fixed mortgage interest rates. The increases have been most marked for the longer dated rates, i.e. five-year fixed. These rates are now 1.0% higher than they were twelve months ago. At the other end, floating rates have remain
ed virtually unchanged over the same time period. Cairns Lockie Limited, over the last 6 months, has favoured the floating rate, when asked for rate recommendations by clients. If you have a larger mortgage and feel you must fix, we suggest you fix only part of it. We have seen many instances
of people fixing for long periods at higher rates only to see their circumstances change and then be faced with large penalties, to alter their banking arrangements.

Our current interest rates are as follows

Variable rate 5.85%

Two-year fixed rate 7.20
Three-year fixed rate 7.80
Five-year fixed rate 8.40

Line of credit facility 6.25
Equity accelerator 6.25

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>



Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>

Maritime Union: Calls For New Zealand Shipping To Resolve Supply Chain Crisis

The Maritime Union says there needs to be innovative responses to ongoing shipping congestion. Maritime Union of New Zealand National Secretary Craig Harrison says it is essential that New Zealand develops its own shipping capacity... More>>


Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>


Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>



Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>

ALSO: