S3.E22 - The lending environment...again

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In amongst some wild weather over the weekend, credit conditions and interest rates are back as a key discussion point again this week, given the soon-to-begin relaxation of the CCCFA rules, but on the other hand the start of Quantitative Tightening from the Reserve Bank. Even though the RBNZ envisages QT being a smooth/managed process, Nick and Kelvin discuss how there’s surely some kind of risk that it adds to upwards pressure on mortgage rates.

Buyer Classification for May is also covered off, and the theme of ‘debt vs equity’ is still evident, with cash multiple property owners having a higher market share in recent months – albeit due to their number of purchases falling less than other groups, rather than an outright increase in activity.

As per usual the guys look ahead to upcoming data this week – including the Q1 GDP data – but also take on a broader discussion of the investment landscape at present (Kelvin's write up). With capital gains fading, yields low, and mortgage rates higher, it’s possible that would-be new investors are looking very hard at their sums. Of course, for existing investors with much higher effective yields, the game is a bit different – and some (all?) will want to avoid Brightline too!

Kelvin's 5 things to know article is live, as is his analysis of the history of the top end of the market. 

Check out all our regular CoreLogic research insights at https://www.corelogic.co.nz/research-news and get in touch on LinkedIn, twitter @NickGoodall_CL or @KDavidson_CL or send us an email on nick.goodall@corelogic.co.nz or kelvin.davidson@corelogic.co.nz

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