Australian Mortgage sales at highest level in three yearsFalling interest rates are bringing more property investors back to the market, according to mortgage broker Australian Finance Group (AFG).
The company processed more home loans in May (more than $3 billion in one month) than in any month since March 2009.
Western Australia led the way, with home loans hitting an all time high of $683 million. This was second only to New South Wales ($812 million), with Victoria ($641 million) and Queensland ($627 million) trailing behind.
General manager of sales and operations, Mark Hewitt, says rate cuts are helping but that’s only part of the story.
“May is generally a stronger month, after the public and school holidays in April,” he says.
“We’re probably also seeing more borrowers turn to brokers to help them get the best deal in an increasingly competitive and complex market.”
AFG adds the higher amount of loans conflict with softening house price data and fixed rate home loans remain near all time highs (19.7 per cent of loans), which confirms continued borrower uncertainty.
“Reduced property prices and interest rates are bringing more people back into the market, but anecdotally, many potential borrowers are still worried by both offshore news as well as conditions at home.”