Barfoot's sales down to 12-year low of 684 in June as 594 vendors pull their homes off the market; BNZ offers up to $10k cash-back with mortgages; 2 year swaps down 75bps to 3.8% in 3 weeks
The cynical me says banks may cut their fixed rates, but with volume drying up they'll be looking to expand their margins to ensure they keep their revenue growth moving in the right direction. Don't expect the cuts to be quite as big as the falls in wholesale rates.
Agree, this feels like competition for market share, because total lending growth is slowing. It is likely to have little impact on the housing market.
The more relevant change in bank lending practices were when ASB, ANZ and westpac all suspended high LVR lending. This will have a material impact on total lending volume
The cynical me says banks may cut their fixed rates, but with volume drying up they'll be looking to expand their margins to ensure they keep their revenue growth moving in the right direction. Don't expect the cuts to be quite as big as the falls in wholesale rates.
Kind regards, ex bank product manager
ANZ moved quicker than expected.
Agree, this feels like competition for market share, because total lending growth is slowing. It is likely to have little impact on the housing market.
The more relevant change in bank lending practices were when ASB, ANZ and westpac all suspended high LVR lending. This will have a material impact on total lending volume