The country's banks are expecting that demand for new residential mortgages will stabilise over the next six months "with buyer confidence returning". Mortgage demand has been very low this year, but has shown some signs of beginning to perk up a little in recent months. In the previous credit conditions survey released in April of this year the banks had said they expected mortgage demand would remain "subdued". "Demand for residential mortgage lending decreased in the last six months, continuing the trend seen since mid-2021," the RBNZ said. The banks reported that there was an increase in the availability of residential mortgage credit over the past six months, "following materially tighter conditions over 2022".

Source: New Zealand Herald October 24, 2023 12:22 UTC