Rotorua home buyers are trying to lock in fixed interest rates before a forecast rise today makes mortgage repayments more expensive, a local real estate agent says.
Ian McDowell, of McDowell Real Estate in Rotorua, said the forecasted rise in interest rates could slow the Rotorua market, but the effects remained to be seen, he said.
"I believe it's had a positive effect up until now because people know the rates are going to go up so they've made the decision [to] upgrade ... and then lock an interest rate in for three to five years."
The Reserve Bank this morning said it had raised its official cash rate by 25 basis points to 2.75 per cent - a move that was in line with market expectations.
Meanwhile, new monthly figures from the Real Estate Institute of New Zealand show the median house sale price for Rotorua jumped 25.3 per cent during February to $288,250 - up 6.4 per cent from the same month last year.