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Mortgages To 8% By October

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  • Mortgages To 8% By October

    Hi Guys

    Mortgages To 8% By October
    01/06/2004 09:06 AM - NewstalkZB

    Floating mortgages are likely to reach eight percent by October.

    That is one of the predictions from the New Zealand Institute of Economic Research.

    Its June Quarterly Predictions forecast a slowing in growth to just over two percent by 2006.

    But inflation later this year is expected to force the Reserve Bank to hike the official cash rate a couple of times between now and the end of September.

    NZIER Senior Economist Doug Steel says by then the OCR will be at six percent, putting floating mortgage rates at just a touch over eight percent.

    Doug Steel says the good news is that interest rates should start to fall again towards the end of 2005.

    A slowdown in immigration will help put the brakes on the red-hot property market.

    The Institute expects to see reduced residential investment, and slower rises in house prices.
    I hope everyone has their hatches battened down?

    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx