Are interest rates on the way up?

[Rosco]

Just noticed today on www.interest.co.nz that the 3, 4 and 5 year rates for Soverign have gone up! They were 6.05% and have moved up slightly so that the 5 year rate is now 6.35%.

I'm shocked and a bit nervous.

I think we all agree that floating and short term rates are on the way down, but are the long term rates on the way up?

[nzfrazer]

NZ Home Loans 3 and 5 year rates have moved upwards as well.

[Errol]

The Bank of England has just dropped its interest rate to 1%, most new mortgages are around 3-4% and going lower. Deposits are earning 1-3.5% so who Knows what will happen here as time goes on.

[Rizowz]

The subject came up tonight whilst meeting with my bank's lending consultant, she reckons we may see 4.5% available for 5 years before long.... and whilst this i feel is quite optimistic, she seemed sure the bank was unlikely to have a large premium on longer terms rather than short terms in the comming months.

[NZGEMS]

Maybe they have just put them up hoping people will jump in and fix as I understand the majority of people are simply leaving things floating at present. That can't give the bank any sense of security, you can take it anywhere.

I have heaps floating at the moment have had quite a bit come up over the past couple of months, had been fixing for 6 months prior to that. so have more due up in the next few months. think I will start doing a few more 6 month fixes though over the following couple of months after each interest drop.

As my mortgage broker pointed out at least i get immediate benefit when I fix for 6 months as it usually takes about a month to kick in if it is floating plus the fixed rates are still slightly lower than floating, Think that may change soon though.

[ecoeco]

Tony Alexander - BNZ Chief economist is (as of today) still picking a OCR low of 2.5% and five year rates at 5.5%.

Granted he is in Paris at the moment so might not have his finger on the pulse.

[fpl]

Just marketing

Just marketing trickery GOT YOUR ATTENTION DIDN'T IT!

[princess]

You're right FPL. I work with another major bank and they're basing business and marketing decisions on low rates til end of 2009.

They dismiss this move as scare-mongering in order to encourage borrowers to lock down rates rather than risk them moving to other banks later in the year.

[drelly]

Also Sovereign overshot the rest of the market. Perhaps they thought the others would follow them and when they didn't, they just raised their rates a little. It's happened before.

[Rolf]

ASB also moved their 3, 4 and 5 year rates up, don't know when it happened though but it must be in the last couple of days. Overall it just looks like they are all adjusting their rates to be more in line with each other. National is for example still higher with their long term rates.

[Jabroni01]

With our couple of terms coming off very shortly, our account manager at ASB advised us last week to wait and at least see after next OCR as they can see the longer terms still heading down.

Still worth waiting it out, hopefully people don't panic and jump into these rate increases now thinking its a turning point.

[CJ]

ASB also moved their 3, 4 and 5 year rates up, don't know when it happened

Happened today as they were a flat 5.95 for all terms this morning.

They were the only ones without a curve in rates so just aligning to market is my guess.

[starlyte]

The subject came up tonight whilst meeting with my bank's lending consultant, she reckons we may see 4.5% available for 5 years before long.... and whilst this i feel is quite optimistic, she seemed sure the bank was unlikely to have a large premium on longer terms rather than short terms in the comming months.

when you say before long.. when do you mean?

my current mortgage is due for refinancing in july/august..wondering what to do

[fpl]

when you say before long.. when do you mean?

my current mortgage is due for refinancing in july/august..wondering what to do

Make a plan with your mortgage broker. How does a change in the interest rate either way fit into your financial future?

Learn about and what the interest movements not just in NZ.

Trend is that the rates will be the lowest in the middle of the year.

[starlyte]

Make a plan with your mortgage broker. How does a change in the interest rate either way fit into your financial future?

Learn about and what the interest movements not just in NZ.

Trend is that the rates will be the lowest in the middle of the year.

Trying to research overseas and NZ, happy to know july is a good time to refinance

Currently, my rate is 9.3% mortgage is only 6 months old now, current term is 20 years
We can happily afford what we are paying now, Not so much more

knowing rates are going to be down when we re fix is good, But concerning what rates will be when we finish that term

however, if we continue to pay the same amount at a lower rate for x number of years. We will actually get some equity..

we borrowed on 100% finance 6 months ago.. that means we do not have any choice into what bank we go with come refinancing as we will have no equity, would have only just paid off the low equity fee