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Stuff
Ratepayers in Wellington city have been hit with a rates error which overcharged residents and undercharged businesses. (File photo)
Mortgage holders are feeling much less negative about their finances while overall consumer confidence remains “in limbo,” according to an ANZ survey.
The bank’s consumer confidence index rose slightly in August, but those paying down mortgages were “much less negative” about both their financial situation and whether it was a good time to buy a major household item.
ANZ chief economist Sharon Zollner said how confident households were feeling was still dependent on whether they had debt.
“But the gap closed compared to last month – surprisingly, by mortgage holders feeling a little less uncomfortable.
”That’s not the Reserve Bank’s plan. And it is a surprising result, given fixed mortgage rates continued to edge higher last month.”
STUFF
Susan Edmunds speaks with four mortgage advisers what how best to prepare yourself financially when buying a home.
Zollner said the turnaround in the housing market could be a driver for the change.
“The level is still very negative, and can be volatile, but it’s interesting that it isn’t one-way traffic as mortgage holders continue to roll onto higher rates.”
Overall consumer confidence rose 1 point last month to 85, with the lift driven by an increase in the question of whether it’s a good time to buy a major household item, which rose from -39% to -31%.
Inflation expectations were virtually unchanged at 4.6% and perceptions of current personal financial situations lifted 1 point to -24%.
A net 13% of respondents expected to be better off this time next year, up two points, while perceptions regarding the economic outlook in 12 months’ time eased 2 points to -34.
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