Banks are playing games.

The banks continue to play game with fixed rates. The OCR drop did not effect the floating rates as many predicted. The NZ Dollar continues a downward trend, some says it is bottoming out others that it still has a way to go.

Banks are playing with the short term 18 months to 2 year fixed rates in an attempt to attract borrowers to fix. This tells me that further drops could be expected in the next 18 to 24 months.

The housing market is still in negative sales territory compared to previous years, bad news continues to hit the market as more and more mortgage backed funds put holds on withdrawals so little if any money is flowing to the secondary lenders.

GE Money has pulled away from the direct broker market put has retained its pathways for broker submissions through its various lending relationships such as General Finance.

Retail is suffering, home owners are suffering and the general election looms on the horizon.

I am so glad I am not having to make thoise awkward calls the reserve bank has to make, it is above my pay scale.

Opinions to date are:
1. If you are struggling with the mortgage then fix at the best rate possible but only after looking at all the options. Remember if you are charged to fix then this can dramatically effect the actual rate you pay when averaged out escpecially on the short term fixes. Again use FEM mortgages and steer clear of the banks.

2. Residential Investment Property is still to be avoided.

3. Do thorough research before investing, despite the market there are still small well run good finance companies such as Gold Band Finance that contiinue to perform.

4. Managed Forex is attractive especially on speculative funds but most managed funds have suffered over the last 6 months. These are high risk investments but can produce great returns - check out www.fxcm.com and view their managed fund options and performances.

5. In a recessive market it is not what you own that matters but what you owe so keep away from those credit cards until things settle down.

6. Keep warm, eat well and be happy, spring is not far away and who knows what the next 3 months will bring.