Longer-term mortgage rates near cycle lows

For longer-term interest rates to fall the OCR would need to dip below 3%, ANZ says in its latest Property Focus report. 

Based on its expectations of a 3% low for the OCR, the country’s biggest home loan lender thinks mortgage rates are approaching cycle lows.

History shows that for mortgage rates to move markedly below 5 % - perhaps to about 4.5% - the OCR would likely need to fall below 3%, and that isn’t what ANZ or the Reserve Bank expects.

So, barring a global crisis, ANZ says the coming months for mortgage holders will be all about choosing when to roll off floating rates onto fixed terms.