People with home loans would be prudent to budget on paying higher mortgage rates over the coming years, ASB chief economist Nick Tuffley says. Breakfast Adrian Orr has said that interest rates were returning to normal after being low during the Covid pandemic. But there were risks that expectations for the economy turned out to be wrong, which could have an impact on home loan rates. Historically the mortgage curve has been ‘tick-shaped’, with short-term fixed rates lower than both the variable and the longer-term rates,” Tuffley said. But there was a risk that home loan rates might end up peaking, and falling, sooner than expected.

Source: Stuff May 30, 2022 22:34 UTC