Home loan borrowers may be wondering whether they missed the ideal window to lock in a longer fixed mortgage rate, after BNZ increased several of its long-term home loan rates. According to economists, late last year may, in hindsight, have been the best opportunity to secure longer-term certainty.BNZ recently lifted its four-year fixed home loan rate by 26 basis points to 5.55 per cent, while the five-year rate rose sharply by 40 basis points to 5.69 per cent. At the same time, the bank cut its six-month fixed rate by 20 basis points to 4.49 per cent, highlighting a growing divide between short-term and longer-term borrowing costs.Infometrics chief executive Brad Olsen said the increases reflect wider market movements rather than an isolated decision by BNZ. He noted that swap rates for two- to five-year terms have risen by about 20 basis points between the end of December and the end of January, placing renewed pressure on bank funding costs.“The increases bring their rates to roughly where everyone else has moved to over the last couple of weeks,” Olsen said, adding that banks may have delayed raising rates for as long as possible, but rising funding pressures have now become unavoidable.Despite the recent hikes, Olsen said the cashback offers seen over recent months showed banks were still keen to remain competitive and attract borrowers. However, he expects a possible pause in major rate changes until the Reserve Bank announces its next decision on the official cash rate later this month.“That decision should provide a clearer signal on the likely path forward,” he said, suggesting borrowers may soon have more certainty about interest rate trends.Reflecting on the debate late last year around whether fixing for four or five years was the right move, Olsen acknowledged that those considerations now appear well-founded. “That’s always the beauty of hindsight,” he said.For homeowners and investors, the latest rate movements underline the importance of timing, flexibility, and keeping a close eye on economic signals when making long-term borrowing decisions.