Interest Rates - Where to next?

[neopoleII]

floating rates are going down..........
why on earth would people want to fix into higher rates?????

oh yeah......... the percieved new property boom...... lol

[foxysfolkfaced23]

maybe the banks want you to float or fix for less than a year.

but don't listen to me I only got a C in ECON101 - after my 2nd attempt (missed the exam first year)

having said that yes the rates curve is so steep that there really is no point fixing now for anything over 2 years unless you believe that rates are going to jump significantly

[peat]

there are good reasons to fix (tho you've missed the boat to some extent by now)
I value knowing that my mortgage is (largely) fixed for 5 years as it allows certainty in budgeting and planning. Less importantly it costs less too as there is a admin fee each time you roll over.
But I also knew when I fixed it at 6.5 in April that this was historically a very low number. last time (in 2003) when I fixed at a similar level I never regretted it
Its seems to me that in NZ with our high interest rate premiums due to being a small indebted nation they will never go particularly low esp when you know the bank wants 3.5 and the country's premium is what ? 2 at least... so there is no chance in hell of them ever going below 5 , so to lock in for 5 at years at 6.5 seemed a sure thing as it gives me certaintly with no huge premium for that. dont think I would be fixing for 5 right now tho.

[Dr_Who]

Anyone know in the details of the NZ banks offshore funding percentage and from which country?

I am trying to figure out if our fixed rates will follow the Aussie RB rates or US rates movement. It certainly doesnt follow our NZ OCR. NZ banks tend to laugh at our OCR rates.