PHOTO: Record-low rates mean cost-savings for borrowers: could they go lower? Photo credit: Getty.
As mortgage interest rates fall to new lows, the key question for borrowers is can they go lower?
In the COVID-19 environment of economic uncertainty and rising unemployment, every dollar counts. Fixed mortgage interest rates, such as Kiwibank’s one-year fixed term rate of 2.69 percent (offered by ASB for two years), are already very low – but is now a good time to lock in a new rate or will they drop further?
Newshub asked Jarrod Kerr, chief economist at Kiwibank to comment on whether interest rates might fall further. For home buyers, including homeowners with existing mortgages on a higher fixed interest rate, Campbell Hastie at Hastie Mortgages answers key questions about when to lock in a new rate and how long to lock it in for.
Are interest rates forecast to drop again in the short-term?
In Official Cash Rate (OCR) and Monetary Policy Statement reviews on March 16 and May 13, the Reserve Bank indicated that the OCR, currently 0.25 percent, would be held for a minimum of 12 months.
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