The interest rate worm has turned, according to the latest ANZ Bank Property Focus Report. Their commentary signals a significant shift in the way the Bank sees things heading.
With respect to mortgage strategy they say, "Although the OCR has been cut by 25bps, this merely offset a rise in funding costs, and as a result, no banks have cut their floating mortgage rates. Rises seen for some longer-term fixed rates reflect both higher funding costs and the sharp rise in wholesale interest rates that has occurred since August. We believe mortgage rates have seen their lows, and although there is real pressure for them to rise further, we caution that rises are likely to be gradual. Nonetheless, given how flat the mortgage curve is, for the first time in a long time we believe it is worthwhile considering fixing some portion of your mortgage for longer than 1-2 years."