NZ mortgage interest rates forecast 2024: Hidden advantage of high interest rates

First of all, check out this graph, reflecting stats from Google Search results, RBNZ and ANZ, showing correlation between searches for ‘How much can I borrow’ and interest rates.

The lower the interest rates, the higher the number of searches, and the higher they are the lower the searches. Almost perfectly inline with each other. If we were to layer Auckland house prices over this same period, we’d likely see a very similar relationship! 

What does this mean? Why are people less interested in understanding their mortgage borrowing ability just because the interest rates have changed?

Most likely fear of higher interest rates, and knowing there’s likely a reduced ability to get the mortgage people think they need to buy a property. But, house prices have lowered since interest rates have increased. Revealing an opportunity for those still looking to achieve their property goals.

So, why should you go against the majority and take this opportunity to buy now? Nz mortgage interest rates forecast 2024:

Reduced Competition:

 Capitalising on a reduced number of people searching for property, you gain improved negotiation power and potential bargains. Layer this with a more confident market post-election, hesitant sellers are anticipated to list their properties over the next few months. This presents a prime window for buyers: diminished competition and an upswing in listings in the months ahead. More supply, reduced demand.

Future-Proof Borrowing Post-Peak:

 While high-interest rates tighten initial borrowing capabilities, the silver lining emerges when rates eventually decrease. Savvy buyers who make their move during peak interest rate periods can later benefit when the rates lower, just a 1% reduction in the interest rate could save you hundreds of dollars per week in mortgage costs.

Harnessing Inflation:

 Embrace the relationship between high-interest rates and inflation. As interest rates peak, inflation can act as a silent ally. The erosion of currency value may seem daunting, but it also diminishes the real weight of your debt. In essence, inflation becomes a subtle force working in your favour.

Anticipating Post-Peak Property Revival:

 Like we can see from the graph above, when interest rates eventually lower, the market often experiences a bounce back in demand. Those who navigated through the peak season strategically position themselves to benefit from potential property appreciation.

All this reveals what could be a hidden advantage…

Starting your property purchase journey during interest rate peaks reveal possibilities. It’s not just about acquiring a property; it’s about recognising the strategic moves that set you apart. In the world of real estate, those who embrace the peaks often discover hidden advantages that pave the way for unique opportunities. Ready to unlock the door to strategic property investment? Learn more about the power of homeownership and the potential for financial freedom it brings at my next workshop!