Fixed Rate Loan Demand Widens in July
In comparison to June 2015, the fixed rate loan demand rise in the month of July, seen from the data released by Mortgage Choice.
As per the data the fixed rate home loans were accounted to 17.58 in month of June, where as they rose to 18.46 in July month.
Mortgage Choice chief executive officer John Flavell said, “Over the month of July, many lenders announced they would raise their interest rates across some products.”
He further added, “The price increases come as many of Australia’s lenders continue to make some significant changes to their lending practices in a bid to curb investment lending growth. Our data would suggest the threat of rising interest rates was enough to encourage more borrowers to fix their mortgage”.
In addition, he found that the loan market seems complicated for loan seekers, due to the strictness in lending standards as per APRA norms. He said it would be normal if we see further increase in fixed rate loan demand in further months as, lot of people want to fix their repayments, to maintain a stability.
State wise demand for fixed rate loans we found as follows:
- New South Wales – 26.83%
- Queensland – 16.33%
- Western Australia – 15.35%
- Victoria – 11.87%
- South Australia – 10.68%
News Source: http://www.theadviser.com.au/breaking-news/32701-fixed-rate-demand-expands