Independent economist Tony Alexander has released a report explaining how “the recent round of mortgage interest rate rises” has seen New Zealand first home buyers “hit the pause button” and investors “run right back into the hills”. Clearly, the factor in play which accounts for the new stepping back of home buyers is the recent round of mortgage interest rate rises. Maybe more accurately, we need to give thought to when people lose their fears of interest rates going higher and expect declines. For that to happen we will need solidity around a view on the timing of mortgage rates going down. In the past year house prices have fallen by 10.9% on average nationwide and this earnings measure has risen by 7.4%.

Source: New Zealand Herald November 18, 2022 03:58 UTC