Powered by MOMENTUM MEDIA
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.

Advertisement
Advertisement

“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.”

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

The corporate regulator has proposed to use its product intervention powers to address “significant detriment” caused by continuing cre...

The federal government’s fund manager has paused investment rounds on the $2-billion Australian Business Securitisation Fund in light of c...

The banking sector’s commitment to extend loan repayment holidays for distressed borrowers could prolong the deterioration in credit quali...

FROM THE WEB
podcast

LATEST PODCAST: Support for current broker remuneration model

Do you expect COVID-19 to reduce or increase your business flows?

Website Notifications

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