Short fixed terms continue popularity
In its monthly series of new lending fully secured by residential mortgages, the RBNZ’s figures show owner-occupiers drew down $4.4 billion in total during April, with $1.7b on one year fixed rates, $721 million on six-month fixed rates and $612m on 18 month fixed rates.
Meanwhile home value growth has completely petered out in the past two months, dipping by 0.2% in May, after a minor 0.1% fall in April.
CoreLogic's House Price Index now shows an average property value across the country of $931,438, up by just 1% from a year ago, but still roughly 11% below the 2021 peak.
On the RBNZ’s figures, the share on six-month fixed terms to owner-occupiers rose to a new historical high of 16.5%, after a previous peak of 15.1% in February. However, the series has only been in existence since 2021.
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