The Reserve Bank of New Zealand has reduced the official cash rate (OCR) by 3.25% since mid-2024, which has driven a sharp decline in mortgage rates to around pre-pandemic levels and a significant improvement in mortgage affordability:
Chart from Justin Fabo at Antipodean Macro
Normally, such a sharp reduction in mortgage rates would deliver a strong rebound in home values. However, no such rebound has eventuated.
