TLDR: In an unusual twist for home-owners used to seeing rates only rising over the last 18 months, ASB cut its longer term mortgage rates today and created the even-more-unusual sight of a downward-sloping yield cure for mortgage rates.
A negative-sloping yield curve is a fairly good leading indicator of a recession and is essentially saying to borrowers that they should expect rates to fall in future. ASB hiked its short-term mortgage rates to around 6.8% and cut its longest term rates by as much as 40 basis points to 6.6%. Interest
Paying subscribers can see more detail and analysis below and hear it in the podcast above.
Listen to this episode with a 7-day free trial
Subscribe to The Kākā by Bernard Hickey to listen to this post and get 7 days of free access to the full post archives.
