The mood of prospective home buyers has hit its lowest point since 2007 according to the latest ASB Housing Confidence Survey.

Chief Economist Nick Tuffley says a net 11% of all respondents are seeing now as a bad time to buy.

He says recent interest rate rises, increasing house prices and lending restrictions have created a growing mood of pessimism in prospective home buyers.

A net 49% of respondents expected house prices would continue rising.