Fixed rate home loans have enjoyed a surge of popularity over September, with first home buyers returning strongly to the market, according to the latest mortgage analysis by AFG.
AFG’s Mortgage Index, released today, showed 16.6 per cent of all home loans processed in September were fixed rate loans.
In August, fixed rate loans made up 9.4 per cent of all home loans.
The index showed a strong return of first home buyers to the market, with 17.4 per cent of Western Australian purchasers doing so for the first time in September.
The national figure of 15.7 per cent is in line with the long-term average, AFG said.
The total number of mortgages sold in WA in September was 1,370, down from August’s 1,442.
The average size of mortgages sold in WA over September was $397,917.
AFG general manager of sales and operations, Mark Hewitt, said the market had been defined by “very aggressive competition” in September.
“The combination of more realistic property prices, attractive financing options and lack of confidence in the share market seems to be coaxing first time buyers and investors back into some markets.”
