ASB joins others in raising long-term rates

The steep rise of longer term mortgage rates continues, with ASB raising their fixed mortgage rates for terms three years and greater this morning.

ASB's four year rate is now 7.15 per cent (up 60 basis points) and its five year rate is now 7.25 per cent (up 50 basis points). The three year rate remained under 7 per cent at 6.50 per cent (up 35 basis points).

ASB cousins BankDirect and Sovereign also put up mortgage rates by the same margins.

Sovereign's five year rate is now 7.35 per cent and BankDirect's is 7.20 per cent.

TSB was the first bank to move after ASB, moving its four year rate up 55 bps to 7.15 per cent and it five year rate up 40 bps to 7.25 per cent.

Other banks may follow soon as well, as wholesale rates and bond yields press on higher, fueling this trend.

- INTEREST.CO.NZ