Fixed Rates End Up as Trends Reverse

http://www.goodreturns.co.nz/
Press Release
For Immediate Release

Fixed Rates End Up as Trends Reverse

Home loan interest rates fell briefly in the first week of October, but rose again later in the month, according to the latest mortgage interest rate survey conducted by Good Returns (www.goodreturns.co.nz).

The survey showed that despite the Official Cash Rate remaining at 5%, as expected, most lenders raised their fixed rates, some by as much as 0.55%.

The largest increases of up to 0.55% were seen in one year fixed rates. As at October 31 the range of one-year rates was 6.15% to 7.32% compared with 5.75% to 7.10% at September 30.

Two year fixed rates increased up to 0.4% with most of the major banks offering 7.10%. The range of 2-year rate, as at October 31, was between 6.5% and 7.77%.

Three-year rates also increased by a maximum of 0.4% and now range from 6.70% to 8.02%.

Floating rates continued unchanged. The lowest floating rate on offer as at October 31 was 6.55%: the highest floating rate was 7.25%.

There was also some activity for long term fixed rates, with many institutions increasing their five year fixed rates.

Industry commentator and editor of Good Returnsand The New Zealand Mortgage Magazine, Philip Macalister noted that of the major players the National Bank was last off the block in raising rates, but expected to see the trend of rates increases continue next month.

As at October 31, four and five year rates ranged between 7.25% to 8.20%. The highest 3, 4 and 5 years fixed rates are well over 8%.

-ENDS-

Good Returns provides a comprehensive database of mortgage rates and deposit rates.

To find out who is offering what rates and to sort them for highest to lowest (or vice versa) go to http://www.goodreturns.co.nz/section.php?CategoryID=200
To compare historical mortgage rates for all lenders go to http://www.goodreturns.co.nz/section.php?CategoryID=201
To compare deposit rates go to http://www.depositrates.co.nz

Media are welcome to use graphs from the Mortgage Rates comparison page as long as they are attributed to http://www.goodreturns.co.nz

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