Here are the key things you need to know before you leave work today.
TODAYS RATE CHANGES
Westpac canceled all its home loan specials today - some of which were very attractive - and then raised its standard fixed rates up to two years, while lowering its 3 and 5 year fixed rates. The Police Credit Union raised its one year fixed rate to 6.29% up from 6.15%.
A LO DOC WIN
RESIMAC has actually reduced the interest rate applying to its Prime Low Doc product across variable and fixed rate terms by 25 bps and not passed on the OCR 25 bps increase - effectively making it a 50 bps reduction. It has not passed on the OCR rise on its other Standard loans either.
LOW CREDIT STRESS
Bankruptcy levels are holding at an amazingly low level. In fact, those finalised last week were the lowest they have been since 25 April some 8 weeks ago. Nationally, that is only 49 and is a long way down from the 229 in the week of September 11, 2009.
HOME LOAN AFFORDABILITY WORSENS
Rising interest rates have made things tougher on the affordability front in May, according to the Roost Home Loan Affordability reports out today.
MORE HOUSES PROMISED FOR CANTERBURY
The Labour Party said it would build 10,000 "affordable homes" in Canterbury over four years and increase the accommodation supplement in the region.
A 20 YR HIGH
Exports continued to soar in May, driven by booming sales of primary goods. The annual trade surplus now stands at $1.4 bln – its highest level since August 1994. However, don’t expect this strength to last, with tumbling dairy prices and recent falls to log prices to pull down exports in the second half of the year. The value of exports in May was up 13% from a year earlier. (H/T BP)
AHEAD OF TARGET
Back in 2010, NZ and China committed to a $15 bln target for trade growth between the two companies by 2015. That trade data out today shows that the target has already been exceeded. A new target has now been set of $30 bln by 2020.
WHOLESALE RATES
Wholesale swap rates were up again today. The rises were smaller than yesterday, but today's compound yesterday's. The 90 day bank bill rate was also higher again today and is now 3.62%.
OUR CURRENCY
The NZ dollar was stronger again today helped along by the record trade surplus. It is now at 87.7 USc, but fallen against the Aussie at 93.1 AUc and the TWI is now over 81.6.
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