Home loan rates will likely rise a bit in 2018 but are not expected to take a big jump up, experts believe. Reserve Bank data shows average fixed-rate mortgages rose by between 11 and 17 basis points between December 2016 and October 2017. George said low inflation meant central banks had held rates low in a bid to stimulate spending and economic growth. That could mean short-term rates start to rise as banks price in an increase in the official cash rate which affects floating and short term rates more than longer-term fixed rates. A lower rate could also allow a person to borrow more, he said.

Source: Otago Daily Times January 02, 2018 21:45 UTC