Fix for two years, economists recommend
Every month, it uses 10 gauges to predict the future direction of house prices. Of those, only migration is pointing solely up this month.
Affordability, servicing, interest rates, consents and house sales, liquidity and globalisation are pointing to flat or declining prices, and supply factors are leading to flat or increasing prices.
The largest monthly drop in median rents in eight years was a factor likely to depress prices, the report said.
The economists said two-year mortgage rates were the most attractive. Floating rates have increased but two-year rates are still below where they were in March. The discounts on two-year terms meant the rate would have to rise by almost 200bps over the next two years to make it worthwhile fixing at near 7% now, the report said.
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