Borrowers who locked in for four or five years  may regret their decision in coming years

Good news is there that a major bank has dropped its longer-term home loan interest rates. 
ASB dropped its three-, four- and five-year home loan rates. However, it increased its one- and two-year rates.
The bank’s five-year rate for home is now 6.49% compared to its one-year rate of 6.84%, and two-year rate of 6.79%. Its three-year rate is 6.69%, and its four-year rate is 6.59%.
Economic analysts said borrowers who are coming to the end of  their fixed-rate home loan periods, might be tempted to lock in for longer periods in return for being able to make lower weekly repayments than they would on shorter term loans.
An independent economic analyst Tony Alexander is of the view that borrowers who locked in for four or five years  may regret their decision in coming years, if inflation fell, and short-term loan rates reduced.
Experts suggested borrowers to refix home loans for a short period, and hope loan rates would start falling soon.