While things feel bearable at the moment, most forecasts suggest that Kiwi families could be in for some tough times as those rising interest rates start to bite. “Most economists are definitely tipping that the unemployment rate will start rising from here,” BusinessDesk deputy head of news Rebecca Howard tells the Front Page podcast. On top of this, Kiwi families also face the prospect of a hard-hitting interest rate crunch as mortgages come up for renewal. “There’s data showing that around 50 per cent of mortgage holders will have to refix in the next 12 months. So that’s an extra $622 per fortnight.”This will mark the start of a very tough period for Kiwi families as they see their disposable income disappear in a bid to keep up with these high mortgage costs.

Source: New Zealand Herald May 10, 2023 00:23 UTC