January 29, 2025 04:09 GMT
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 %
![](https://media.marketnews.com/image_5c9bd36838.png)
Source: MNI - Market News/Refinitiv
- Total new residential mortgage lending rose 53% y/y in December and seasonally adjusted +18% m/m. The data is volatile but the 3-month average of the annual rate climbed to 32.2% from 23.3%. The level is its highest in just over three years.
- The strength wasn’t due to one particular group of home borrowers. Lending to first time homebuyers rose 10.4% y/y 3-month moving average, to other owner occupiers +32.8% and to investors it soared 62.3%.
NZ new mortgage lending by type %
![](https://media.marketnews.com/image_502903deb3.png)
Source: MNI - Market News/Refinitiv
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