Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
There are no mortgage rate changes to report today.
DEPOSIT RATE CHANGES
But there have been many changes for savers to note today. Firstly ANZ tweaked its TD rates, with a 9 month one reaching 3.60%. However they took an ax to their savings rates, cutting most by -25 bps. TSB Bank launched a 13 month special at 3.65%, and at the sam etime, they cut some saving rates by -25 bps. UDC raised all their TD rates for terms 2 to five years by +20 bps. F&P Finance raised all their TD rates for terms of 9 months and more, and now almost all of these rates are above 4%. SBS Bank has reprised its 3.80% nine month rate which is a limited time special. Their 2 year TD is also now 3.80% and their 3 year is 4%. The Police Credit Union, and First Credit Union also changed savings rates.
LVR RESTRICTIONS BITE IN AUCKLAND
The QV November data was out today and that shows house price inflation eased to a six-month low of +12.4%. Auckland continues to feel the brunt of the loan-to-value restrictions, with the region’s house price growth slipping to a two-year low of +12.8%. Auckland’s house price inflation has been outpacing price growth in the other main urban areas throughout the last five years, but the gap is now at its smallest since January 2011.
MORE UNSOLD
The volume of unsold houses in the market is now trending higher. Nationally there are 16 week. In Auckland the level is 14 weeks and that is now a two year high. In Christchurch it is now 18 weeks, while in Wellington it was 8 weeks at the end of November. The recent earthquake will mess with their levels in the next few months however.
TRADE TERMS WORSEN SLIGHTLY
Our terms of trade - the relationship between export prices and import prices - fell -1.8% in the September quarter, due to goods export prices falling more than goods import prices. The terms of trade has fallen in four of the last five quarters. However, its still at an historically highish level.
LOWER INVESTMENT
Private new capital expenditure is falling quickly in Australia. It has fallen by more than -30% in two years and that is a decline of more than NZ$15 bln annual rate. Even for Australia, that is significant. Future plans don't look too flash either.
NOT BACKING OFF
More rises today in the WMP dairy futures market. The SMP product firmed as well. Although not signalling a huge rise, these markets are not backing away from earlier gains.
EASY TO BLAME, BUT NOT TRUE
It is convenient but both divisive and wrong to blame foreign buyers for Vancouver’s housing affordability crisis, the head of Canada’s housing authority said earlier today. He cited new CMHC data on the condominium market showing that 2.2% of condos in Metro Vancouver are currently owned by offshore buyers - roughly in line with the 2.3% total in 2014, and down sharply from the 3.5% in 2015. The survey also showed that offshore ownership of newer condos built since 2010 was higher - at five per cent. “The evidence tells us that the origin of investor activity in Canadian residential real estate is predominantly domestic,” he said.
WHOLESALE RATES RISE SHARPLY
As expected, wholesale swap rates rose faster and steepened further today. The two year is up +2 bps, the five year is up +5 bps, and the ten year is up +8 bps. The 90-day bank bill is unchanged at 2.04%. Yields on NZGBs are also higher, up +2 bps today.
NZ DOLLAR SOFTER
The Kiwi dollar is softer today to 70.8 USc. On the cross rates it is at 95.7 AUc, and is at 66.8 euro cents. The TWI-5 now at 76.8 Check our real-time charts here.
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