Economists are paying close attention to fast rising mortgage rates, and whether households and the economy can cope
Economists are paying close attention to fast rising mortgage rates, and whether households and the economy can cope
24 June 2022
ASB Bank estimates higher mortgage rates will add a net 5.6 billion dollars to aggregate household outgoings over the coming 18 months.
This lifts to a figure more like 15-billion when factoring in the cost of living.
ASB Senior Economist Mike Jones says that's about nine percent of retail sales.
He says they expect to see spending patterns tightened up considerably over the coming 18 months.
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