New Zealand House Prices Fall by Record as Interest Rates Soar

The video discusses the ongoing rate hikes and their impact on property prices and mortgage rates. It highlights the increase in mortgage interest rates from 2.5% to 6.5% over the past year, affecting buyers significantly. The bank is expected to raise rates again, with future projections indicating a potential cap at 5.5%. This could stabilize mortgage rates and boost buyer confidence. The video also addresses the current mortgage stress in New Zealand, noting a rise in arrears but no significant mortgage sales. Banks are offering support options to those facing stress.

What has been the trend in mortgage interest rates over the past year?

• They have fluctuated without a clear trend.

• They have remained stable.

• They have decreased significantly.

• They have increased significantly.

What is the expected impact of rate hikes on the housing market in the medium term?

• It will have no impact on the housing market.

• It might stabilize the housing market.

• It will cause housing prices to skyrocket.

• It will likely cause a housing market crash.

What might indicate stability in mortgage rates according to the discussion?

• If rates exceed 6.5%

• If rates do not go higher than 5.5%

• If rates remain at 7%

• If rates drop below 2.5%

What is the current situation regarding mortgage stress in New Zealand?

• Mortgage stress has decreased significantly.

• Arrears have risen, but no major mortgage sales are reported.

• Banks are not offering any help to those in stress.

• There is a significant increase in mortgage sales.

What should individuals facing mortgage stress do according to the video?

• Sell their property immediately.

• Ignore the situation and hope it improves.

• Take out more loans to cover the stress.

• Communicate with their banks for possible solutions.