Homeowners to feel pain next year when home rates hit 6%

Auctions become a hard sell as rates jump, but there are opportunities. (Image: BusinessDesk)

Wed, 25 May 2022

Mortgaged homeowners won’t be running for the hills just yet, but the implications of ‘short and sharp’ ramped up interest rates could start being felt in about 12 months, a leading economist says.The Reserve Bank of New Zealand (RBNZ) hiked the official cash rate (OCR) by 50 basis points to 2.0% today and was ‘hawkish’ in signalling more 50bp hikes to come as it aims to get a handle on consumer price inflation. The headline rate is at its highest since September 2016.Corelogic chief property economist, Kelvin Davi...

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