Falling interest rates are being heralded as a game changer for the economy

Westpac's latest Economic Overview report says they're a good sign for the housing market.

Chief economist Dominick Stephens thinks New Zealand will see economic growth over the following year.

He says any growth is likely due to lower interest rates and the Government not implementing a capital gains tax.

Stephens says it's likely house prices will increase, but ruled out an increase impacting housing affordability.