News of lower wholesale interest rates suggests we may be in for another round of super low home loan interest rates as early as next week. A news item on interest.co.nz provides examples of the correlation between swap rates and the mortgage rates with one example being SBS Bank’s one year rate as it was back in November 2015. At the time their rate was big news as it was the lowest at 3.99% while the one year swap rate was at 2.72%.
Fast forward to February 2016 and SBS Bank’s one year rate is at 4.35% while the one year swap rate is currently lower than it was back in November, its currently 2.58%. A downwards move is predicted and SBS Bank could move back to where it was in November 2015 at 3.99% or go even lower.
It really just takes one lender to make a move and the other lenders are sure to follow. Borrowers in the know are regularly speaking to their mortgage broker to keep up to speed on the best deals and terms on offer.
So how low can mortgage rates go? Possibly lower than they were in 2015.
This blog article was written for PropertyBlogs by Mobilize Mail.