News - 21 January 2008

Happy New Year!!

We hope you have had a safe and relaxing Christmas break and have had a chance to enjoy the fantastic weather!

The Alpha Update

Help Me Please!! What Do YOU Want To See In My Newsletters?

Please email me to let me know what you want to see in these newsletters this year, and Answer these Questions

1. Frequency (currently fortnightly) - too often, just right, not often enough
2. Content - rubbish, fantastic, just what I need
3. Please let me know your thoughts for content changes/improvements - what would you like to see?
4. The interest rate table - useful regularly, useful occasionally, not useful at all
5. The Alpha Group Website - Is it useful for you? What do you like best? Worst? What would you change? What would you like to see?
6. Any other comments/suggestions

Email stuart@alphagroup.co.nz now!

I appreciate that Your Time and Feedback is Valuable!

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Food for Thought

“Speed has never killed anyone. Suddenly becoming stationary – that’s what gets you.” Jeremy Clarkson

What's New??

• Higher interest rates across the board
• The demise of one mortgage banking company
• A gradual but noticeable tightening of lending criteria across all lenders

If any of these concern you and you want to know more, email Stuart@alphagroup.co.nz

Interest Rate and Currency Comments

The Reserve Bank is due to make it's first announcement of the year on the Official Cash Rate this Thursday. It is caught between the opposing forces of continued high domestic inflation (above their 3% target) and a rapidly weakening international economy, caused by the credit crunch. Economists think odds of a rate rise are about 40%. They are more certain that at least one rise (and possibly 2) will occur before the end of this year.

With our interest rates remaining high and the rest of the world seeing their exchange rates dropping, the kiwi will remain high for most of this year at least.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 21 January 2008 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.74% (down slightly)
5 year bond rate 7.0% (down slightly)
NZ/US Dollar 0.7775 (up from 0.7700)

Current Range of Interest Rates for home and investment mortgages as at 21 January 2008

Floating:
9.49 to 11.40% (stable)

Fixed For:
1 Year - 9.50% to 10.60% (up slightly)
2 Year - 9.25% to 10.25% (up)
3 Year - 9.10% to 10.45% (up)
4 Year - 9.0% to 9.72% (up slightly)
5 Year - 8.85% to 9.85% (up slightly)

For a complete table of interest and exchange rates, click here.

The information stated herein was correct at the time of release, but is subject to changes without notice.