News Release February 10, 2000
Mortgage interest rates rise - as predicted
The majority of lending institutions announced an increase in both their floating and fixed interest rates in the month
to February 10, according to the latest survey conducted by the Real Estate Institute of New Zealand.
Floating rates, which now range between 6.50 and 7.60 per cent, compared to the 6.50 to 7.25 per cent available in the
month to January 10, 1999.
One year fixed rates now range between 6.85 and 8.50 per cent, a half per cent increase from the 6.85 to 8.0 per cent of
last month. Five year fixed rates now range between 8.70 and 9.35 per cent, while fixed two, three and four year
mortgage rates now range between 7.75 and 9.15 per cent.
“The Official Cash Rate having risen from 5.0 to 5.25 in the last Reserve Bank review, these increases are not at all
surprising.” says Mr Max Oliver, National President of the Real Estate Institute.
“The impact of the raise in the OCR, while anticipated, is extremely hard on the New Zealand home owner, who is
presently carrying the burden of the drive for lower inflation. While the current attitude of the Reserve Bank is that
it is better to ‘move moderately and early, than aggressively and late’ most New Zealanders would presently be hard
pushed to tell the difference.”
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