Home News Buyers spooked by rate hike spectre

Buyers spooked by rate hike spectre

Font size :
The prospect of interest rises has Aussie home buyers running scared, so says CommSec's latest economic insight. Martin Arnold, equities economist, CommSec, wrote in the report that approved loans were cancelled in droves earlier in the year as the prospect of interest rate hikes in March spooked potential buyers. "Aussies are becoming increasingly financially savvy and with the media fuelling speculation of interest rate hikes, prospective home buyers fled the property market. Now that interest rates are on hold, the value of cancellations should return to normal levels," he noted. The latest data from the Australian Bureau of Statistics showed the value of new housing loans (commitments) fell by 0.4% in March, after a 3.2% rise in February. Investment loans fell by 5% to $6.29bn. Owner-occupied housing (those buying or building homes to live in) rose by 1.7% to a record $14.52bn. The situation is contributing to the low vacancy situation. Vacancy rates in all states are well below the 3% level that generally indicates a balanced market, according to Arnold. "In coming months, vacancy rates are likely to remain low and push rental yields higher, but the prospect of better rental returns has not yet coaxed investors back into the market. The weakness in the investor segment of the property market was likely driven by rampant speculation of interest rate hikes a month or so ago as well as the stellar performance of the Australian share market which has risen over 11% already this year."

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

Young Sydneysiders are less keen on homeownership Young Sydneysiders are less keen on homeownership

Many would rather ‘rentvest’ than be tied down to a costly owner-occupier mortgage, according to new studies Read more

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate The sprawling redevelopment aims to boost the supply of affordable housing in Sydney ... Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More mortgage news and articles

Sponsored Links

Tuesday, Aug 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords