Mortgage rates are again sneaking higher

The ANZ is the first of the major banks this year to increase its rates – upping the floating rate by 10 basis points.

The BNZ in its Markets Outlook says although rates are rising slightly, a huge boon for the household sector will come by way of mortgage holders moving from floating rates to fixed rates or simply locking in recent past gains.

“The sum total cashflow impact on the household sector will be significant and help boost retail spending particularly given that mortgage holders tend to be in the demographic of those with a high marginal propensity to consume,” Stephen Toplis, BNZ research head says.

While the majority of New Zealanders don’t have a mortgage so don’t benefit directly, he says the bank is optimistic that stimulatory interest rates will prove to be net positive for the economy.