Will interest rates moves early?  The Reserve Bank dropped the official cash rate (OCR) back in March to a record low of 2.5%, as stimulus following the Christchurch earthquake and a weak economy.  Economists were expecting interest rate rises to start in early 2012 though this now looks likely to come forward.  Official figures for economic growth released last week (March Quarter = 0.8%**) and for inflation this week (June Quarter = 1.0%**) were both higher than expected and have economists now expecting interest rate rises to start as early as September this year.  Banks have generally eased lending criteria over the last few months so if you are buying or trading up it pays to shop around.  For those with mortgages, now is a good time to consult the old crystal ball :-) and review your split between floating and fixed rates.  We have a mortgage broker that has received great feedback from clients.  If you need advice in this area, drop us an e-mail (leonie@leoniesnook.com).

Leonie Snook and Steve Welsby Top Wellington Real Estate Agents

** Statistics New Zealand