Home Loan Report: Higher home loan rates this week

Kiwibank has increased its three and five-year fixed rates today by 5 basis points. National and ANZ are increasing all but its three-year rates tomorrow by between four and 10 points.

Rising rates shouldn’t be any surprise to the market and borrowers. The latest ASB Housing Confidence survey released last week showed that there was an expectation of further interest rate increases.

While the survey was carried out before the Reserve Bank announcement on October 26, a increasing number of those surveyed still expect further rate increases at some point.

ASB says that it appears that New Zealanders are more resilient to interest rate changes than their counterparts in Australia and the US, where any change in rates is rapidly reflected in the housing market.

Its survey showed the market and expectations of house price increases was still relatively strong.

Also today the latest QV numbers show the market is still strong, although house prices have come back a little.