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NEW ZEALAND: Mortgage Lending Rising Strongly

NEW ZEALAND

The RBNZ began its easing cycle in August of 2024 and has now cut the OCR 125bp to 4.25% with another 50bp likely on February 19. While we won’t know the impact of this on growth for some time given GDP data lag, the RBNZ’s data for December showed the recovery in residential mortgage lending is strong and broad-based. Dwelling prices have been weak but this increase in demand should be seen here soon.

NZ new mortgage lending %

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The RBNZ began its easing cycle in August of 2024 and has now cut the OCR 125bp to 4.25% with another 50bp likely on February 19. While we won’t know the impact of this on growth for some time given GDP data lag, the RBNZ’s data for December showed the recovery in residential mortgage lending is strong and broad-based. Dwelling prices have been weak but this increase in demand should be seen here soon.

NZ new mortgage lending %

Keep reading...Show less