The next table highlights the impact of these actual and projected interest rate increases by comparing monthly mortgage repayments on the median priced New Zealand home at the trough of the interest rate cycle (i.e. June 2021) with repayments at the end of March 2022 and the projected increases outlined by the RBNZ. This analysis uses average floating mortgage rates, which are assumed to rise in line with the RBNZ’s OCR projections. As you can see, monthly mortgage repayments on the median priced New Zealand home had already increased by $520 between June 2021 and March 2022. Given the outsized role that housing plays, the pending escalation of mortgage repayments and property price falls also risks stunting the New Zealand macro economy.

Source: Stuff April 26, 2022 07:57 UTC