Interest rates go higher

Mortgage rates are being pushed to new highs as ANZ, New Zealand’s biggest home loan bank, adjusts its rates.

Its five year rate is now 6.95% and pundits are predicting mortgages interest rates will be in the 7% region shortly, just when a huge chunk of mortgage holders come off their low 2% and 3% fixed rates. This is where the banks are focusing as the real estate market takes a breather and sales drop.

ANZ has no carded offers below 5% now and the new fixed rates are market highs. Its one year rate is 5.95%, two year rate 6.40% and three year rate 6.59%.

The bank’s special rates, to which conditions apply, is one year 5.35%, two years 5.80% and the rates are effective from today.

ANZ says with high levels of volatility in global markets and increased inflation pressures domestically, there has been a significant increase in wholesale market rates.

This has been reflected in changes it is making to its fixed home loan rates, and the term investment rates to support customers to meet their savings and investment goals. Other banks are expected to raise their rates shortly.

The bank says interest rates will continue to be reviewed in response to international swap rates, which ironically have gone backwards in the past few days, and local market conditions.

ANZ has also increased its term deposit rates to 2.75% for six months, 3.65% for one year, 4.10% for three years, 4.30% for four year and 4.40% for five years.

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