Long term rates drop and short ones up
The majority of lending institutions eased long term fixed mortgage interest rates, in the month ending May 10, but floating and short term fixed interest rates continue to rise,
Tuesday, May 21st 2002, 10:47PM
The majority of lending institutions eased long term fixed mortgage interest rates, in the month to May 10, but floating and short term fixed interest rates continue to rise, according to the Real Estate Institute mortgage interest rate survey.
"While eight of the 12 lending institutions lowered their three to five year rates by as much as 0.20%, the overall range of 8.30 to 8.60% remained virtually unchanged," REINZ national president Rex Hadley says. "This seems to indicate that most institutions are merely ‘tweaking’ their fixed rates to remain within competitive reach of each other."
Despite this, the latest figures signal both a stabilising fixed interest rate environment, and that lending institutions are seeking to encourage customers towards longer term mortgage arrangements.
All 12 of the lending institutions surveyed increased their floating rate by 0.20 to 0.30% and the majority of lenders raised their one to two year fixed rates on offer by 0.05 to 0.35%. Floating rates now range between 7.10 and 7.50%, compared to the 6.24 and 6.70% range as at April 10.
One year fixed rates range between 7.00 and 7.85% at May 10, compared with 6.75 and 7.65% to April 10; two year rates range between 7.80 and 8.15% compared to 6.95 and 7.65% last month; three year fixed rates range between 8.19 to 8.30%, compared to 7.95 to 8.31%, per cent last month; while four and five year rates range between 8.29 to 8.60%, compared to 8.30 to 8.60% last month.
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