Lending predictions for 2021
In his latest newsletter, the former BNZ chief economist predicts the record lows in the market will stay in place through 2022, incentivising Kiwis to spend rather than save.
Nonetheless, Alexander notes "risks are shifting", and says the golden era for borrowers will eventually come to an end.
He notes borrowers' enjoyment of "good mortgage rate surprises since 1979 has come to an end".
"That is extremely unlikely to be the case here on out and that has implications for the sustainability of rapid house price rises beyond this year into 2022."
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