Mortgage rates creeping up

More small upward moves by banks on longer-term mortgages today.

ANZ, National Bank and SBS Bank have raised rates by between 10 and 15 basis points (bps) this morning, following moves by other banks over the past week.

The moves contrast with expectations from some that the Reserve Bank will cut the overnight Official Cash Rate on Thursday by 25 basis points to 2.25 per cent. Most economists expect the RBNZ to hold the rate at 2.5 per cent. However, SBS also lowered its six month mortgage rate by 5 bps to 5.50 per cent.

Long term mortgage rates in New Zealand are rising again because of the rise in international wholesale rates as governments around the world borrow more in efforts to stimulate their economies.

To read the full NZ Herald article click here

Posted: 9 Jun 2009

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