Home dreams fade as rates rise

Monday 13 September 2004

As interest rates and house prices rise, more families are falling behind in their dream of buying their first home.

By The Landlord

More bad news for borrowers came yesterday when Reserve Bank governor Alan Bollard announced the official cash rate would rise for the fifth time this year to 6.25 per cent.

Banks usually follow suit within days by raising mortgage rates, which are now tipped to head toward 9 per cent.

The double hit of rising house prices and interest rates was making it harder to get into the market and was prolonging the process because fewer people seemed to be selling, Mrs Nicholas said.


Read More - Opens in a new window
Commenting is closed

Property News

Weak sales, resilient prices

Auckland’s housing market saw another slump in sales volumes in May but prices are holding steady, according to the city’s largest real estate agency.

House Prices

House price drops are short-lived - Alexander

Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.

Commercial

Resilience needed in face of change

The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.

Site by PHP Developer