Podcasts Other The Mike Hosking Breakfast Christina Leung: Economist says as people face higher mortgage repayments, they'll start to rein in spending

Christina Leung: Economist says as people face higher mortgage repayments, they'll start to rein in spending

Published: Nov. 29, 2022, 7:08 p.m.

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Scary times for some home-owners, with ANZ the first to react following last week\'s record OCR rise.

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It\'s increasing its home loan and deposit rates, after the OCR was lifted to 4.25 percent last week.

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ANZ expects house prices to continue dropping until mid to late next year, falling 22-percent from their peak last year.

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But the New Zealand Institute of Economic Research is forecasting a lower interest rate track of 5 per cent.

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Principal economist Christina Leung told Mike Hosking many households are rolling off fixed term mortgage rates of about a 2 per cent rate to something significantly higher.

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She says it\'s expected as they face higher mortgage repayments, they\'ll start to rein in spending, \\xa0slowing the broader economy.

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