Though that meant home loan borrowers would face higher repayments, mortgage rates were not expected to return to pre-Covid levels. “This suggests that mortgage interest rates are likely to settle at historically low levels, but at rates slightly higher than our earlier forecasts,” Tennent-Brown said. Robyn Edie/Stuff ASB economists have told borrowers that home loan rates will rise, unless something unexpected happens requiring the Reserve Bank to keep interest rates lower for longer. “Borrowers are prudent to do their budgets on higher interest rate costs rather than the rates on offer today,” he said. Borrowers could obtain certainty, and a significantly lower rate by fixing their mortgages rather than having a floating rate mortgage.

Source: Stuff July 08, 2021 01:30 UTC