Mortgage rates will go up next year. How will that impact the election & the economy?
“How out of touch can you be”” Political leaders react as bank hikes mortgage rates
Finance Minister Nicola Willis is suggesting New Zealanders “shop around” after Westpac hiked some fixed-term mortgage rates, while Prime Minister Christopher Luxon is reminding people of the numerous Official Cash Rate cuts while his party has been in power.
I have to be honest, I’ve genuinely been surprised by the surprise that our new Nordic Ice Queen Reserve Bank Governor will raise the OCR next year because she has been crystal clear since her appointment that her focus is on inflation.
We discussed this very issue with the excellent Cameron Bagrie on The Bradbury Group on Tuesday night.
You really should be watching The Bradbury Group.
Some pundits have claimed the Reserve Bank have miscommunicated, and that is why the Banks are now pushing yup rates but that’s a misunderstanding on behalf of the pundits.
The movement you are seeing is because those in the mortgage market smart enough to have heeded the Reserve Bank Governor’s warnings, and are already insulating themselves for the inevitable rise.
All those on mortgages who have lulled into a sense of false complacency that their mortgage costs are coming down are going to be terribly disappointed.
That pain from the middle of the year will come rushing back with vengeance…
New data shows more Kiwis struggling to pay bills; 24,000 in mortgage strife
New data reveals more people are in hardship and struggling to pay bills – a 14% increase from a year ago – with some 24,000 people facing difficulties paying their mortgage.
…National has sold themselves to those with mortgages as cost of living saviours, but the moment the independent Reserve Bank Governor (she with glacial ice melt in her veins), will coldly stare down the Government and force the OCR up, National go from cost of living saviours to cost of living failures.
Raising the OCR will massive ramifications for the economy AND the election because National have bet everything on the Mortgage belt.
Expect a lot more mortgagee sales next year once the OCR hikes kick off as people holding on by their fingernails slide under the waves.
Those green shoots of recovery are really the dried snot of desperation.
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You’re talking home owners with mortgages – or those with the deposit and aspirations of home ownership. Not sure if interest rates will matter too much in the election washup. Maybe in places where houses are really expensive – excluding the likes of Pauwanui, Taupo and Queenstown – and most folk have mortgages that are through the roof. In a good many electorates houses don’t seem that out of reach if you’re in employment – of course never that easy – and mortgages aren’t the huge drain on discretionary income as they are in some hot spots. There will will other lines of fracture in the election.
I see ASB has jumped on the up wards trend by quietly stopping the discounts for new loans ..On wards and up wards from here .Now that the RBNZ has another leader who wont allow themselves to be bullied by a desperate bunch of no bodies things will move up to where they should be .The lesson for government to learn is they have fuck all to do with inflation which is really corporate price gouging .All the so called cost cutting by Willis has done nothing good for NZ .Having increased unemployment along side underemployment is a fiscal disaster .Lower tax take and increased numbers of people collecting benefits is false economy and thinking .Then there is the loss of a generation of workers to other countries .In the past us that left have returned but I dont see why this generation would want to come back to a country that has nothing to offer them or their kids in the future.
Plus 1 to that.
Check your spelling gw it’s getting worse.
educated under a NATIONAL PARTY GOVERNMENT LEAD BY kEITH HOLYSMOKE A WEALTHY COLONIST LAND THEIF
That’s absurd gw.
The mortgage rate rises u Der Labour caused much heart ache and it will take some time for those people to get over the set back .4 more years of coalition rule will help
You and Bob the fart must have the same programmer
Check your spelling Trev it’s getting worse.
“Coalition rule”
Yes, we are under a dictatorship. Thank you for your admission, Trevor.
AND THE LOW INTEREST RATES UNDER THE SAME GOVERNMENT SHOWED HOW SHALLOW AND GREEDY THE NOW CRUSHED MIDDLE REALLY ARE .Lots of them are now selling at a massive loss .
They should be around 6% which is neutral really because savers will have an incentive to save and invest in productive enterprises and keep the lid on the unproductive house market .
Yes, mortgage rates will go up, and I see van whats her face is giving a 2% pay increase 45cents to be exact how kind of her and she isn’t done yet she’s changing employment laws to reverse the UBER drivers win in court. All the more reason why we need to get rid of this rotten lying controlling bullshitting government.
Yes every time they loose a court case they rush through a law change .
You are being loose with your comments gw, I think you are going to lose.
Yes and a very clever chap he is too.
“The mortgage rate rises u Der Labour”
You have never ever been a good judge of character, nor have you had a good handle on English literature Bob.
CG I hold tertiary qualifications in English.
Holding in a hard drive is not the same as in a human brain
I said in the chat on “The Bradbury Group” Youtube show that if house prices are not rising going into the election, then National could lose. All the polls are bullshit. House prices are all that matters to NZ voters. My own feeling is that they will go through hell and high water to make sure them thar house prices will be going up next year.