Powered by MOMENTUM MEDIA
subscribe to our newsletter

Fixed-rate demand falls as rates drop

New research by Mortgage Choice reveals that fixed-rate home loan demand has fallen to its lowest level in more than two years.

The group’s latest national home loan approval data found fixed-rate home loans made up just 17.91 per cent of all loans written in April, down from 18 per cent in March.

Mortgage Choice chief executive John Flavell said demand for fixed-rate home loans hasn’t been this low since February 2013.

“Fixed-rate demand has taken a significant hit in recent months,” he said.

“Just one year ago, fixed-rate demand was sitting at record highs and now it is hovering near record lows.”

Advertisement
Advertisement

PROMOTED CONTENT


Mr Flavell noted the sudden drop in fixed-rate demand appears to be caused by an increasing number of borrowers believing home loan interest rates may fall further over the coming months.

“This is understandable given that the Reserve Bank of Australia continues to indicate that further easing of monetary policy may be appropriate,” he said.

The data showed variable home loan rates, specifically ongoing discount mortgages, continue to be the most popular product amongst borrowers, accounting for 43.96 per cent of all loans written.

Fixed-rate demand falls as rates drop
mortgagebusiness

Latest News

Property sale settlements hit a two-year high across the country in December 2020 and surged in Victoria, driven by the easing of COVID-19 r...

Fintechs, including UK-based Monzo Bank, could face the same fate as Xinja unless they create a sustainable future, GlobalData has warned. ...

Property analysts believe that the RBA’s forecasted 30 per cent growth in property prices over the next three years will materialise in 7...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Turnaround time blowouts

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.