Fixed mortgage flight continues
Figures from the Reserve Bank show a continuing trend of borrowers towards fixed mortgages.
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.
Caleb Allison
Wed, 01 Aug 2012
Wed, 01 Aug 2012
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Fixed mortgage flight continues
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