Mortgage sales at highest level in three years

Mortgage sales at highest level in three years

Posted on Tuesday, June 05 2012 at 3:23 PM

Falling 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.”

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