3:00 PM
Home mortgage rates are on the decline, with BankDirect the latest lender to drop its interest rates.
Its fixed rates now range from 7.25 per cent for six months, to 7.45 per cent for five years.
BankDirect's move follows HSBC which lowered all its rates earlier today, including its floating rate - now at 7.8 percent.
The Bank of New Zealand dropped its fixed interest rates yesterday.
The banks say the dramatic drop of the US cash rate, as the Federal Reserve tries to stabilise the American economy, has filtered through to international markets.
Chief executive officer of HSBC, Simon Edwards says the banks' cost of funds are now significantly lower than they were a week ago and they can afford to pass savings on to customers.
Mr Edwards says the lower interest rates will add momentum to improving confidence in the property market, but he says we shouldn't expect a major boost.
- IRN
www.myproperty.co.nz
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