Demand For Fixed Rate Home Loans Australia Increases Again
Fixed rate mortgage demand that was getting down in last few months, got boosted again in the November month, as noted from the loan approval data collected by Mortgage Choice.
As per the data, the fixed rate home loan demand increased by appromately 4 per cent in November 2015, thereby making a share of 17.39 per cent among overall loan aprovals of the month. The figure was 13.88 per cent in the last month.
At this Mortgage Choice chief executive John Flavell said, “The increase came as no surprise and was likely driven by a larger proportion of first home buyers looking to lock in a low rate. At the end of October, the majority of Australia’s lenders lifted the interest rates on their suite of variable home loan rate products. The interest rate increases were made outside of any movements by the Reserve Bank of Australia, which sent shockwaves through existing and potential property buyers”.
He further added,“As a result of those rate hikes, an increasing number of new buyers are looking to fix at least part of their mortgage as they seek out security and surety around their mortgage repayments.”
Also, as the RBA monetary policy decision remains unchanged for December month too, so it is expected that fixed rate loans demand will increse further in this month.