Mortgage activity acclerates; Rodney responds

It's still very quiet on the rates front. However there is clearly some actively in the market. Mortgage approvals figures from the Reserve Bank rose an estimated 4% in June. Meanwhile house sales from Barfoot and Thompson last week showed that the pickup in the Auckland market is continuuing and, according to Westpac, likely to be replicated in the REINZ national house sales figures due sometime this week.

We also continue our series looking at how interest rates work. In the latest piece Rodney Dickens responds to views from economists who suggest his proposals put forward earlier this month won't work.