Fixed rates keeping falling

Fixed home loans rates continue to fall, while floating ones stay static.

Wednesday, March 12th 2003, 12:01AM

The majority of lending institutions eased one to five year fixed rates in the month to March 10, according to the latest mortgage interest rate survey conducted by the Real Estate Institute of New Zealand.

Fifteen of the 17 lending institutions surveyed lowered three to five year rates by 0.14 to 0.75%, while 11 institutions decreased their two year fixed rate by 0.10 to 0.45%.

REINZ national president Graeme Woodley says the majority of lending institutions are still placing the greatest emphasis on longer term rates, floating rates stayed stable in the latest period surveyed, with only two institutions changing their floating rates, easing them by 0.14 – 0.15%, to now range between 6.95 and 7.85%, the same range as the month to February 10.

"Again we see that floating rates remain essentially unchanged, despite a stable Official Cash Rate (OCR) and comments from the Reserve Bank on March 6 indicating that ‘there may be scope for a cut in the OCR later in the year’. Banks appear to be seeking more long term arrangements with their customers by stimulating demand for three to five year fixed mortgages."

Woodley says that while the long term lending environment was increasingly positive for New Zealand homeowners, the institute believes there to be room for increased competitiveness in short term fixed and floating rates.

"While some longer term rates lowered by as much as 0.75%, however generally the degree of movement was between 0.10 and 0.30%.

To see the full range of up-to-date rates visit Good Returns Mortgage rates page. This page has been upgraded and all rates are now sortable from highest to lowest (and vice versa).

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