The low fixed-rate loans offered by some lenders are enticing a growing number of borrowers to lock their rates in - according to a new report.
The Australian Finance Group Mortgage Index revealed that the proportion of fixed rates rebounded from an all-time low of 3.2% to 5.7% in December 2008 - a rise of 78%. This is the first monthly increase since February 2008 according to the mortgage broker.
The data also showed a marked improvement in mortgage sales with the December figure exceeding expectations after volume climbed by 11% compared to 12 months ago. AFG attributed the solid increase to the continued robust demand from first homebuyers and strong activity among owners looking to refinance. First-time buyers accounted for 21.2% of all mortgage sold by AFG while 37% of borrowers were refinancing. Investors also got into the action pushing the overall number to 28%, up from 27.6% in the previous month.
Source Your Mortgage Magazine: 14/01/2009
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