Free Newslink Signup
Don't miss out on Australia's Top Property Investment news.
Sign up for Hotspotting's FREE newsletters!
By Terry Ryder, 5th July 2011
Incessant media speculation about interest rate rises has prompted growing numbers to fix their interest rates.
The popularity of fixed-rate home loans hit its highest level in five months in June, reaching 12.3% of all approvals, according to mortgage broker Mortgage Choice.
All states except South Australia recorded a rise in demand for fixed-rate loans.The largest rise was in Western Australia, where demand rose from 9.4% of loan approvals in May to 14.2% in June.
However, ongoing discount home loans - where the interest rate is discounted over the loan term, usually in return for an annual fee - remains the favoured loan type, despite dropping half a percentage point over the month. The second most popular loan type for June was standard variable rate, at 25%, closely followed by basic variable rate, at 21%.
Company spokesperson Kristy Sheppard suggests the constant speculation about interest rate rises (including by Mortgage Choice and other headline-hungry entities) has convinced a higher number of borrowers to lock in their rate “rather than feel their stomach churn with each piece of speculation”.
The alternative, of course, is to simply ignore all the pointless speculation about interest rate rises, which to date has been inaccurate.
“July’s figures will be interesting because over the past month we’ve seen several lenders reduce their fixed rates on home loans,” Sheppard says. “There’s now one-tenth of a percentage point between the average three-year fixed rate, traditionally the most popular with borrowers, and the average basic variable rate. We haven’t seen that close a comparison in some time.”
ENDS
Each of the reports in the hotspotting.com.au stable of publications contains a Top 10 list of locations tipped to out-perform the general market. These locations are considered to have growth ...
Top 10 South Australia Hotspots South Australia is no longer one of the poor relations of …
Infrastructure Hotspots: Educational and Medical Many of the leading growth areas of our major cities have a …
Special report: How To Identify Hotspots
Identifying locations which will out-perform the …
The Port Report - Top 10 Export Port Hotspots The driving force of economic growth in the next five years …
Top 10 New South Wales Hotspots New South Wales has been regarded as the weakest property …
Select Your Report
Each of the reports in the hotspotting.com.au stable of publications contains a Top 10 list of locations tipped to out-perform the general market. These locations are considered to have growth drivers…
This is a quarterly subscription newsletter which contains all the crucial economic, infrastructure, population and real estate details that underpin the property market.
SA: North-western suburbs of Adelaide Ethelton and its neighbours beside the Newport Quays development, as well as suburbs further north on the Lefevre Peninsula near the Techport facility, are set t…
It seems wealthy car owners have been updating their rides, and consumer confidence is lifting generally. CommSec’s luxury car sales index shows that after a subdued 2011, 126 new luxury cars we…
So you’d like to invest in property? That’s how everyone makes money, isn’t it? Put your nest egg into bricks and mortar – then watch it grow in value. But who do you turn to f…
The usual drill – three minutes of your time and all with a positive feel. Monday is the day to be down, Saturdays are for looking up. 1. 3 good signs Here are positive signs from out th…
©2012 hotspotting.com.au | Security Statement | Privacy Policy | Disclaimer | Delivery and Refund Policy | Contact
Your Cart