Scary times for some home-owners, with ANZ the first to react following last week's record OCR rise.
It's increasing its home loan and deposit rates, after the OCR was lifted to 4.25 percent last week.
ANZ expects house prices to continue dropping until mid to late next year, falling 22-percent from their peak last year.
But the New Zealand Institute of Economic Research is forecasting a lower interest rate track of 5 per cent.
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.
She says it's expected as they face higher mortgage repayments, they'll start to rein in spending, slowing the broader economy.
LISTEN ABOVE
See omnystudio.com/listener for privacy information.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
CrimeLess: Hillbilly Heist
It’s 1996 in rural North Carolina, and an oddball crew makes history when they pull off America’s third largest cash heist. But it’s all downhill from there. Join host Johnny Knoxville as he unspools a wild and woolly tale about a group of regular ‘ol folks who risked it all for a chance at a better life. CrimeLess: Hillbilly Heist answers the question: what would you do with 17.3 million dollars? The answer includes diamond rings, mansions, velvet Elvis paintings, plus a run for the border, murder-for-hire-plots, and FBI busts.