Interest Rates

[speights boy]

Another bank paying more for longer term retail money.

Westpac raises TD rates

Westpac has raised some longer term TD rates by as much as 60 bps, bringing it up to market best

[Hound]

Got a letter from Westpac today wanting business, 4.94% for one year.

[speights boy]

Yes.
Effective tomorrow all their fixed rates increase except their one year.

[Bluekiwi]

If how my source tips these things, is correct, I believe BNZ will put some rates up this week.
They seem to be the leader of the pack when it comes to putting rates up.

[Maccachic]

Westpac emailed me with that one year rate apologising for me moving last time and say they will make things better.

[speights boy]

Kiwibank up; with a higher increase if LVR > 80%.

Kiwibank increases fixed-term rates

The bank says it's splitting its offer for two-year fixed lending, offering 5.75% for people with 20% or more equity, and 5.95% for those with less than 20% equity.
The bank's two year rate has been 5.50%, meaning both new offers are increases.

And, also from Monday, Kiwibank will increase longer term rates for all new lending.
Kiwibank's carded, or advertised, three year fixed-term rate will rise 35 basis points to 6.40%; four year rate increases 40 basis points to 6.70%, and its five year rate will rise 30 basis points to 6.90%.

[grip]

yup all banks will have tiered rates from now on.
it's a simple mechanism to ration debt. the 10% of lending to high LVR will have to be the highest margin.

[speights boy]

Used to be the norm of course back in the day of everyone having 2nd and 3rd mortgages.
Credit has become too easy and almost expected as of right.

It will be interesting to watch the effect of these restrictions when combined with the steady increase in fixed rates.

The head of Barfoots thinks the LVR rationing will be positive by helping affordability.
Forcing those affected to reduce their expectations as opposed to over committing.
The way fixed rates are moving isn't going to help affordability however, but will certainly assist in the lowering of expectations.

Good news for investors, one would think so.......until politics take over.

[dandan]

http://www.globalpost.com/dispatch/n...ed-taper-track"The economy added 169,000 jobs in August, the Labor Department reported, fewer than the 177,000 expected by analysts.And the prior two months' job numbers were revised sharply lower, slashing July jobs growth to 104,000.The unemployment rate ticked down a tenth point to 7.3 percent, the lowest rate since December 2008, but for the wrong reason: fewer people were actively seeking jobs."

[speights boy]

Interest rate held at 2.5pc

The bank said OCR increases will "likely be required" next year and over the next couple of years the rate will move about 50 basis points higher than expected just three months ago.
.......
But today's MPS also shows short term interest rates rising more steeply than projected in the June statement, about 50 basis points higher over the next couple of years.
........
The bank's projections for 90 day bank bill interest rates shows rates rising from 2.6 per cent this year to 3.6 per cent by the end of the 2014 year, up 100 basis points from present levels.

Short term rates are projected to keep rising to 4.7 per cent by early 2016. The end point for rates in the June statement was just above 4 per cent.

[Leftette]

And in the next breath he bleats on about the "still too high NZD", when his 1st sentence simply managed to strengthen it further. He doesn't care about the NZD. Exporters get yet another kick in the stonks.

[speights boy]

Fixed rates now on the rise

Economists say homeowners have officially missed the boat on locking in cheap fixed mortgage rates.
.......
"In the past ... I said if you want to fix, you've really got to get in before the hiking cycle becomes obvious to everyone," Stephens said.
"I think that opportunity now has been lost.

"Now I'd suggest the choice is one of personal preference and personal circumstance, rather than trying to beat the market."

[grip]

Essentially the trajectory has changed. So rates will move faster than economists have been predicting.

This is why NZD has shot up this morning. Market didn't price in the rate of increase.

Basically from here on, banks will only up rates as wholesale money will be more expensive.

[Davo36]

Yeah that's all guess work. Interest rates could do anything over the next year.

[speights boy]

Yeah that's all guess work. Interest rates could do anything over the next year.

True, but those who fixed for 5 years earlier this year probably don't care any more.