Rate falls and flat prices nudge house market toward buyers

Falling interest rates and flat house prices pushed home affordability to a two-year high in September, a survey shows.

And the situation for house buyers is likely to improve further this year with tax cuts from the start of this month, further falls in house prices forecast, and the likelihood of another cut in the Official Cash Rate on October 23. The average two-year fixed mortgage rate fell 34 basis points to 8.62 per cent last month, and house prices fell in most major centres including Auckland, Wellington and Hamilton, according to the Wizard Home Loans Affordability report.

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By NZ Herald, 15 October 2008

Posted: 15 Oct 2008

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