New Zealand's housing market is expected to cool in 2015 on the prospect of more interest rate hikes by the Reserve Bank, according to rating agency Fitch Ratings.

National house prices are expected to rise 2.5 per cent with higher interest rates increasing the cost of servicing mortgages and as building rates in Christchurch and Auckland boost supply, Fitch said in its global housing and mortgage outlook on Tursday. That’s less than half the six per cent annual…