Don't expect a return to the very low interest rates seen in the past decade

The Reserve Bank's cut the Official Cash Rate to 4.25 percent, with forecasts it'll be at 3.6 by late next year.

The average outstanding mortgage rate has now peaked at 6.4 percent, and likely to be 5.8 by December 2025.

Governor Adrian Orr says people should be realistic, on how low they'll go.

He says people have been cautiously rolling over onto short term interest rate fixes, but he assumes that will change.