Reserve Bank Governor Adrian Orr says he's comfortable with banks lowering mortgage rates before the OCR peaks

The OCR was lifted on Wednesday to three percent, and is expected to peak at four percent early next year.

However, Orr is unsure on when he sees mortgage rates turning.

But he says the longer term rates are driven by international wholesale markets for money.

Orr says international mortgage rates are already starting to price in a future risings and banks are grabbing hold of that.