First home buyers retreat from market
First home buying has fallen to its lowest level ever, making up just 6.9 per cent of all home loans, down from a previous long-term national average of 15 per cent, according to the AFG Mortgage Index.
The index showed New South Wales buyers seem to have shied away the most, with first home buying comprising only 1.7 per cent of all new home loans.
First home buying made up 3.9 per cent of loans in Queensland, 5.3 per cent in South Australia, 6.9 per cent in Victoria and 18.9 per cent in Western Australia.
Meanwhile, the rate of home loan borrowers switching mortgage arrangements jumped to 37.3 per cent of all new mortgages in December, the highest since March 2012.
Those picking fixed rate loans dropped to 14.5 per cent of all home loans from 17.1 per cent in November.
The rate of introductory loans increased from 4.9 per cent in November to 5.8 per cent in December.
The findings come as borrowers are browsing for the variable rate deal and avoiding fixed for now as interest rates are poised to go down rather than up, general manager of sales and operation Mark Hewitt said.
"The last time we saw refinancing at these levels, in March 2012, borrowers were acting to lock in rates, and fixed interest loans reached a four year high," he said.
AUTHOR
Malavika Santhebennur
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