Australian borrowers are continuing to shy away from fixed rate loans despite rising interest rates, the latest Mortgage Choice national housing loan approval data for July 2007 has revealed.
Mortgage Choice National Corporate Affairs Manager, Warren O’Rourke said that demand for fixed rate loans by Australian borrowers has dropped to its lowest level in 20 months with only 22 per cent of all approvals in this category.
“This is down on the previous month (27 per cent) and the 12-month average, which was at 30 per cent.” Mr O’Rourke attributes the change to two factors – price and a greater awareness of the market. “Fixed rate pricing is now not as attractive and secondly, consumers accept the realities of home loan interest rate movements and how they affect variable rate products”. More…