Lower mortgage rates unlikely - ANZ
ANZ has just released its latest Property Focus report and it notes that there is limited ability for mortgage rates to go much lower.
While the Reserve Bank cut the OCR by 25 basis points to take it to a record low of 2.0% on August 11, mortgage rates fell only slightly over the month.
This was because all four of the major banks opted not to pass on the full cut to borrowers.
The bank’s chief economist, Cameron Bagrie, said while at face value this is disappointing for borrowers, it’s a question of balance.
Borrowers did get some rate reduction, but depositors were the winners as some term deposit rates lifted, reflecting more competitive tension for deposits, he said.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
