New Zealand wholesale interest rates have fallen sharply over the last month or so, suggesting mortgage rate cuts could be in store before long. Two-year swap rates, which can influence mortgage rates, currently trade at around 5.075 per cent, down sharply from 5.785 per cent in early October. “It’s all feeding through to the Reserve Bank’s [rate hikes] being done, and the next move being a rate cut,” Kerr said. Harbour Asset Management fixed income and currency strategist Hamish Pepper said the falls in wholesale rates should flow through into mortgage rates soon. “For now, wholesale rates have moved a lot more but retail rates have not moved at all, so that transmission is not really there,” he said.

Source: New Zealand Herald November 21, 2023 01:29 UTC