ANZ economists are predicting that mortgage rates will continue to rise throughout this year, adding further pressure to New Zealand's housing market and household budgets. The bank's economic team expects ongoing increases across various mortgage terms as monetary policy settings remain restrictive.

Despite the anticipated rate increases, ANZ economists believe house prices will experience only a small decline in 2024, describing this as 'the most likely scenario' for the property market. This relatively modest price adjustment suggests the housing market may prove more resilient than some earlier forecasts predicted, even as borrowing costs continue to climb and affordability challenges persist for prospective homebuyers.