Consumer unease has led to declining mortgage sales in July, according to Australia's largest mortgage broker.
The AFG Mortgage Index for the month has shown a 3.7% drop in mortgages sold for July. AFG general manager of sales and operations Mark Hewitt said the results indicate continued wariness among consumers.
"These figures confirm a much more worrying trend: that most Australians are still fearful about their financial future. Ever since the interest rate rise last November, home buyers have gone into their shells.
Hewitt highlighted that Western Australia, supposedly the prime beneficiary of a resources boom, has the most depressed property market of all.
"Domestic financial news is dominated by talk of rate rises and the carbon tax. Gloomy international financial news has seen stock markets slump. We’re all looking for strong economic leadership to provide the market with some much needed confidence," he commented.
Refinancing continued to account for the most active segment of the mortgage market, representing 39.1% of home loans. Owner-occupiers moving house or upgrading their current home accounted for just 11.7% of sales.
AFG added that major banks continued their dominance of the mortgage market in July. The big four and their subsidiaries wrote 81.7% of all new home loans for the month.
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
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out