Special mortgage rates flat in August

The average residential mortgage rate increased only marginally last month, according to RBNZ data.

Short term rates saw a small increase in price, while longer terms either held firm or decreased slightly.

Average special rates on one year mortgages rose from 2.48% to 2.49% over the month.

Two year special rates rose by four basis points, up from 2.82% to 2.86%. 

The average three year rate fell last month by one basis point to 3.18%. 

While four and five year specials stayed put at 3.51% and 3.83% respectively. 

Rate movements narrowed last month after the Reserve Bank paused plans to raise the official cash rate in the wake of the Covid-19 outbreak in Auckland.

In July, the average one year special rose by 27 basis points, and the average two year by 25 basis points, in anticipation of an August rate hike.

The average three year special rose by 28 basis points from June to July, according to the RBNZ data.