Interest.co.nz, Summarised by Centrist
Westpac economists are predicting that the average mortgage rate for New Zealand households will rise more in the coming year than it already has during the current period of increasing interest rates.
This is because around 50% of all mortgages will be up for repricing in the next year, so more borrowers will be exposed to higher rates.
While household incomes have been rising, the increase in debt servicing costs could lead to a decline in per capita household spending, resulting in a significant drag on economic growth.
