Not unlike our Spring weather, you'll have noticed interest rates have been doing a bit of a dance – and just like we adjust our heaters at this time of the year – the reserve bank has also been adjusting rates based on the economies temperature. This is what we've seen + what we're expecting here at Mortgage Me:

• Interest rates are at or very close to their peak

• We expect some small ups and downs over the next 6 months as the global uncertainty evolves
• The current interest rate level is not sustainable + interest rates will fall when inflationary pressures reduce
• The Reserve Bank have suggested that neutral interest rates should sit around 5%
• The longer term fixed rates (3, 4 & 5 years) could drop first making it tempting to fix for longer period of time - those that did that in 2008 just before the Global Financial Crisis got caught when interest rates fell sharply
• We don’t expect any major reductions to interest rates in the next 6 months
• A change of government this year may see increased interest in property from investors which could drive up prices
• Dunedin property prices seem to have reached the bottom of the cycle
• We do not see house prices falling significantly further in the future
• If we were 1st home buyers we would be trying to by before the end of 2023 or very early 2024
• If we were property investors we would be sitting on our hands waiting for a change of government (+ tax policy) + when this occurs we would look to start adding to our portfolios.

https://linktr.ee/beckyrunga.mortgageadviser