This week, in the aftermath of RBNZ’s decision to keep the OCR at 1 per cent, ASB economists peered into their crystal ball and came up with a bold prediction:
“We now expect the OCR to remain at 1.00% until 2022, followed by a series of mild OCR hikes and 2.25% endpoint this cycle,” their latest weekly report reads.
The improved economic outlook has reduced the need for further OCR cuts, prompting ASB economists to scrap the 0.25% cut they had previously pencilled in for May. If their prediction was correct, lower-than-ever mortgage rates would be bound to remain low for longer than expected.
If you have clients who are considering fixing their mortgage, please remind them to get in touch with one of our advisers at Mortgage Link. Interest rates are just one component of the overall mortgage picture, and while some fixed rates are tempting at the moment, the choice between fixed and floating may not be as straightforward as it seems.
Depending on their circumstances, having a combination of fixed and floating may be more appropriate for them – especially if they are planning to sell soon or would like to pay off their mortgage faster…
To get in touch with the team at Mortgage Link, please contact:
021 835 506
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.