Mortgage holders appeared to breathe a collective sigh of relief this week when Reserve Bank of New Zealand (RBNZ) Govenor Allan Bollard cut the Official Cash Rate (OCR) by 0.5 per cent to a record low 2.5 per cent as the central bank reviewed the countries economic data.
Many economists are now predicting only one further rate rise late in the year with the RBNZ staying on the sidelines for an extended period while officials assess the impact of the devastating earthquake on the economy.
For current borrowers, a longer pause in interest rates would be extremely beneficial providing some respite to mortgage holders, especially those in areas affected by the earthquake and its aftershocks.
What we would really like to see is the RBNZ stay its hand for the remainder of 2011 to allow borrower confidence and sentiment to return and to take undue pressure off household budgets.
In this edition see our featured article on Lenders Mortgage Insurance and Refinancing and don’t miss our Guide to Budgeting for a New Home for helpful tips and ideas for first home buyers.
For more information on the home loan market, or to discuss your home loan strategy in the current economic climate, make an appointment with me today.
As always, I hope you enjoy this edition of The Insider.Tags: home loans, Lenders mortgage insurance, Loan Market Group, OCR, refinance, Reserve Bank of New Zealand, The Insider