Over the past few weeks there has been quite a change in one of the factors which was probably contributing to the end game appearing, and that is declining fixed mortgage rates. Fixed mortgage rates reached high levels in the middle of June when worries about inflation in New Zealand were at their greatest.
But after the middle of June a wave of optimism swept around the world regarding the track for global inflation. The markets adopted a view that central banks wouldn't have to do much more than they had already signalled and that come the end of 2023 official interest rates would probably be falling again.
As a result, wholesale borrowing costs went down and banks fed this through to decreases between 0.2% and 0.4% for fixed mortgage rates in New Zealand.