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One dollar coins - Source: ONE News
Fixed mortgage rates have dropped a little over the past week.
Financial website interest.co.nz reports that BNZ, CBS Canterbury, Southern Cross Building Society, PSIS and Westpac have nudged some of their fixed mortgage rates down by 10-50 basis points.
The move brings them into line with recent rate cuts by other banks.
Editor Bernard Hickey says wholesale mortgage rates dipped in recent weeks as expectations about the Reserve Bank's plans to start raising the Official Cash Rate have ebbed out towards later in the year.
BNZ cuts its 2 year mortgage rate to 7.1% from 7.2%, bringing it into line with ASB and Kiwibank. BNZ also cut its 4 year rate to 8.19% from 8.5% and cut its 5 year rate to 8.49% and 8.75%.
Southern Cross Building Society cuts its 3 year rate from 7.8% to 7.69%.
CBS Canterbury cuts its mortgage rates across the board, starting with its variable rate dropping to 5.99% from 6.45% and its 2 year rate to 7.25% from 7.45%.
PSIS cut its 2 year rate to 7.1% from 7.15%.
The dip is only expected to be temporary, despite being seen as an indication of increasing confidence in the stability of banks.
Massey University banking specialist David Tripe has told the Dominion Post the falls are due to New Zealand banks getting cheaper fixed-rate funding overseas.
It is about the perceived credit worthiness overseas of the banks in this country, Tripe says.
ANZ National Bank chief economist Cameron Bagrie says the dips in fixed rates are marginal and he expects they will rise, and will continue to rise on the back of a rising OCR later in the year.
Bank of New Zealand chief economist Tony Alexander has disputed any suggestion there is any increased interest globally in lending to this country.
He also says the drop is due to the Reserve Bank's decision this month to keep the OCR at 2.55, pushing out expectations that a rise will not happen until mid-year.
