Fixed mortgage flight continues
Kiwi borrowers are continuing to move towards fixed home loans, latest figures from the Reserve Bank show.
In June, fixed mortgages made up 39.9% of the market with a total value of $69 billion.
That is 5% higher than in May, when the trend started to shift away from floating mortgages.
The value of floating mortgages continued to decline, comprising 60% of the market with a value of $104 billion, a 2.4% drop compared to May.
The total value of residential mortgages in June was $173.8 billion, up from $173.2 billion in February and $169 billion in June 2011.
The monthly weighted average interest rate on floating mortgages was 5.68%, and 6.17% for fixed.
For borrowers on fixed mortgages, terms of one or two years were the most popular, although there is an increasing trend towards longer terms.