Home loan affordability dips in June

New Zealand home loan affordability worsened slightly in June from May as the median house price nudged up faster than incomes, according to the latest "Roost Home Loan Affordability" report.

However, affordability is set to improve through July as average two year mortgage rates have dropped slightly and house prices are expected to be flat or falling.

The national median house price rose 0.7 per cent to NZ$352,500 in June from May, but remains down 2.2 per cent from a record high of NZ$360,500 in March.

This drove a slight deterioration in home loan affordability given the average 2 year mortgage rate was flat at 7.19 per cent.

The Roost Home Loan Affordability report measures the affordability nationally and regionally for income earners and households, taking into account house prices, interest rates and incomes.

Affordability improved significantly in Auckland, Northland and Queenstown as house prices dropped, but worsened in Christchurch where prices rose.

To read the full NZ Herald article, click here

Posted: 20 Jul 2010

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