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Date Published : Wednesday, March 26, 2008
Rising interest rates and fluctuating financial markets did not put homebuyers off from taking out mortgages in December, new figures have revealed.
According to figures by the Market Intelligence Strategy Centre (MISC), mortgage brokers saw a rise in business of 24 per cent in December, despite the festive season.
The Australian reports that $18.24 billion worth of home loans were secured during December, despite an interest rate rise announced by the Reserve Bank of Australia just a month earlier.
However, the refinancing of home loans dropped by 21.8 per cent during the month, compared with December 2006.
A spokesperson from MISC told the publication: "This means real demand for new loans by borrowers led the December charge and not a restructuring of business affairs by existing mortgagees as a result of economic pressure."
The figures also suggest brokers, which account for 30 to 40 per cent of home lending, are continuing to gain market share at the expense of the banks' direct channels.
Earlier this month, a report by the Real Estate Institute showed that the recent interest rate rises - which have now hit a 12-year high - have made the housing market slowdown, as auction clearance rates drop.
Homes on auction in Brisbane saw only a 24 per cent clearance rate over the weekend of March 15th and 16th - down more than half on the same period last year.
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