RBNZ reports high house prices, rising mortgage costs due to interest rates; government aims to improve long-term housing supply for affordability.

The Reserve Bank of New Zealand (RBNZ) reports that while house prices have eased, they remain high for buyers, with rising mortgage costs due to elevated interest rates. Recent tax policy changes may stimulate investor demand, but overall activity is weak. The government aims to enhance long-term housing supply to improve affordability. The RBNZ acknowledges cautious borrowing in a tough economic climate but highlights the resilience of New Zealand's financial system.