ANZ expects a significant drop in interest rates

Economists at the country’s largest bank suggest considering a six-month fixed home loan due to anticipated “significant falls” in mortgage rates.

ANZ has updated its forecast, lowering this year’s expected house price growth from 3 percent to 1 percent, with a predicted 4 percent increase next year.

This adjustment follows Westpac’s recent revision, which reduced its forecast for price growth this year to 2.1 percent.

ANZ attributed its change to weaker-than-expected sales data from the Real Estate Institute in May and an increasing number of properties available for sale, indicating continued downward pressure on prices.