Rate rises on the horizon
Thursday, December 2nd 2010, 12:20PM
It has been interesting to see two-year rates cut by 15 lenders in the last month, because the margin between two-year swap rates and two year mortgage rates is closing as seen in this week's graph. This suggests a round of rate rises is on the horizon.
In Expert Views BNZ economist Tony Alexander says he would now be thinking seriously about moving into a two or three-year rate given that the chances of two-year rates falling further are minor.
In news, after running down its mortgage book for most of the last decade, HSBC has started to compete for business again.
Head of banking studies at Massey University David Tripe, says Kiwibank made little difference to mortgage market growth and we look at ASB, ANZ and Kiwibank's mortgage books for the September quarter.
The Banking Ombudsman announces a number of mortgage lenders have joined the scheme and the new regulatory regime for financial advisers went live yesterday, to be phased in by July.
| « Flurry of cuts to two-year rates | Tis the season to be floating » |
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