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One and two year fixed rates preferred

ANZ economists have reiterated their view that one and two year fixed rate home loans offer the best value at the moment.

Rates on on longer-term home loans have remained unchanged despite a mild rise in wholesale interest rates. Although the latter might ordinarily flag a lift in fixed mortgage rates, the Reserve Bank’s reiteration that the OCR will likely go lower in November should cap wholesale rates and keep a lid on term mortgage rates.

"With little on the visible horizon to drive global interest rates markedly higher and the RBNZ flagging rates being low for quite a period, we prefer to target low cost 1-2 year fixed rates," they say.

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