MONEY MATTERS

Lots of negotiations this week as we continue to move buyers and sellers forward in this market. From the coalface, vendors are standing firmer, as they see fewer competing homes come to market and a cash rate reduction now clearly in view for November, possibly even earlier. “As the OCR falls, we would expect to seeing floating mortgage rates fall in line with that, and the six-month to two-year mortgage rates also fall further as the OCR comes down.”

We have learnt that the banks are starting to drop their rates in a price war, “may it continue”. ASB chief economist Nick Tuffley says fixed rates have already fallen from peaks late last year.