Interest rates tumble & how low will they go?

Is this just a marketing stunt?

Great news for the Snells Beach, Algies Bay & Mahurangi East Real Estate market as SBS Bank have just dropped their home loan interest rate to a super low 3.99 per cent. Banking expert David Tripe says this may well be the lowest rate in New Zealand’s history.
SBS launched its one year fixed rate special on Monday and say it will run for a limited time only, so if you want in you will have to be quick.
This home loan rate is the lowest New Zealand has seen in decades and no doubt will stir up the larger banks into hopefully cutting their interest rates too. The falling interest rates mean buyers at present can afford to pay that bit more for their dream home in the Snells Beach, Algies Bay & Mahurangi areas!
The Southland-based bank has timed its home loan special with their branding overhaul, SBS aims to strengthen its presence in the Auckland market and New Zealand wide & why wouldn’t they with the Real Estate market being so strong at present.
No doubt the home loan offer will bring strong growth to the small bank’s client pool.

If planning on cashing in on this special home loan rate there a couple of strings attached surprise surprise.
It only applies to residential owner-occupied properties, requires new lending of at least $100,000, 20 per cent equity, and signing up for one other SBS product.

Is this going to last ?

Go2Guys mortgage broker Campbell Hastie said other banks might well follow suit, but only for as long as the special was available.
“I don’t think it’s going to become entrenched.”
Hastie said he suspected home loan rates had now hit the bottom and would not fall further.
The market was probably already pricing in assumptions that the Reserve Bank would cut official interest rates next month, he said.