More borrowers float than ever before
Friday, February 4th 2011, 11:53AM
Since September there have been more borrowers with residential home loans on floating rates rather than fixed rates as predictions for the next official cash rate (OCR) increase continue to be pushed out.
People rolling off fixed rates are lured into the low floating rate as weak economic data means the rate is unlikely to increase alongside the OCR until the second half of the year.
The percentage of loans on floating is at its highest since the Reserve Bank data shows in 2004. However, just a few years ago in 2008 the percentage of people on floating was at its lowest as the average floating rate for all the major banks was 10.75%.