MortgageWatch: Shorts down, longs up

The table below, from www.goodreturns.co.nz, shows the changes for the week.

The key points are that a number of the banks lowered their floating rates on the back of the Reserve Bank’s official cash rate on Thursday. The central bank cut the OCR 50 basis points and much of that has been passed on. While Westpac doesn’t feature in this week’s changes it moved earlier anticipating the OCR cut.

While these movements in short-term rates have been well-reported we continue to see longer term rates increase.

Currently the ASB Group (ASB Bank, Bank Direct, Sovereign and NZ Home Loans) continue to push up their long term rates.