Growth in house prices to fall significantly next year

ASB says higher mortgage rates will be a gamechanger but most of their impact will not be felt until next year.

Chief economist Nick Tuffley says two of the biggest supports for house prices of the past two years will flip and become restraints.
 
“First, the rise in mortgage interest rates has begun and, in time, will tilt momentum.

While the RBNZ delayed the start of its tightening cycle it has been quick to assert it will kick-off if/when the Covid fog clears a little.

“About three quarters of mortgages nationwide are due to refix over the coming 12 months and the Reserve Bank clearly doesn’t want the mortgage curve to droop.”