Fixed Rate Demand Dropped in the Month of February
As per the new loans approvals data collected for the month of February, it can be seen that the fixed rate loans demand got a dip in the demand from the earlier demand.
The mortgage choice data shows that there were overall 22.28 per cent loans written among the overall loans, whereas in the January month, there were 23.62 per cent loans written, means there is a dip of 1.34 per cent.
At this Mortgage Choice chief executive John Flavell says, “He wouldn’t be surprised to see demand for fixed rate products start to taper off. Given the Reserve Bank of Australia has indicated that they won’t hesitate to cut rates again if the need arises, borrowers may be encouraged to take out variable rate home loans and take full advantage of the current low interest environment”.
The state wise share of fixed rate loans were as follows:
- The highest demand was in NSW with a percentage of 28.42
- Next comes Queensland and South Australia with a percentage of 23.64 and 17.29 respectively.
- After that Victoria and Western Australia that accounted for 16.92 per cent and 13.23 per cent loans respectively.
In contrast, variable rate loans comes up with 77.72 per cent for the February month.