Housing market can handle rates hikes – ASB

Housing market can handle rates hikes – ASB
Mortgage rates look set to climb, but most home-owners have a buffer, according to an ASB economist. (Image: Deposit Photos)
Andy Fyers
Mortgage borrowing has "gone nuts" and so have the debt-to-income ratios of borrowers, a new report says.However, by some measures borrowers are now more resilient to an interest rate shock than they were before the covid-induced housing boom.This analysis is in a report from ASB economist Mike Jones looking at the potential impact of higher mortgage rates in the coming years.It found that while there had been a massive spike in mortgage lending – up 45% in the past 12 months – the ratio of household debt-to-equity (gearin...

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