Mortgage rates could be dropping swiftly across the country as banks move to follow each other in lowering their interest rates.

Massey University banking expert Dr Claire Matthews believes other banks will almost certainly follow.

"It think the mortgage sector continues to be very competitive. It's a key market for the banks so they've all very interested in getting as large a market share as they can."

Matthews says cutting the OCR will likely push up house prices, instead of making them more affordable.

"Cheap money does mean it's more attractive. People can borrow more and therefore they can afford to pay more for their homes."