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."

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Friday, Sep 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