Home borrowers turn cautious
Australian home loan borrowers have entered 2011 in a highly cautious mood, according to new data released by Mortgage Choice revealing a significant rise in demand for fixed rate home loans.
According to the Mortgage Choice data, customer demand for fixed rate home loans hit its highest level since May 2008 last month.
Commenting on the data, Mortgage Choice spokesperson Kristy Sheppard said demand for fixed term mortgages had reached a pace unseen for two and half year to stand at 15.2 per cent of loan approvals despite the cash rate being lower today than it was in 2008.
Sheppard said the data seemed to reflect the caution being exhibited by mortgage holders.
“It is obvious that concerns about utility bills and other living cost hikes along with predicted rate rises for 2011 are having a noticeable effect on the purchase decisions of new borrowers,” she said.
AUTHOR
Mike Taylor
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