Western Australians taking out home loans continue to prefer fixed interest rate loans, with 24 per cent taking them up since January, according to May's Mortgage Choice national housing loan approval data.
The full text of a Mortgage Choice announcement is pasted below
Western Australian borrowers continued their slight, but consistent upward trend to record the strongest preference for fixed interest rate loans since January 2007 with 24% of all approvals in this category, the latest Mortgage Choice national housing loan approval data for May 2007 revealed.
Mortgage Choice National Corporate Affairs Manager, Warren O'Rourke said, "Demand for fixed rate loans by Western Australian borrowers increased to 24% of all approvals which is up on the previous month of 21%. Interestingly, Western Australians still have a more even spread of product category choices than other states. This tends to indicate that there is growing confidence about interest rate stability and continued confidence in the housing market in Western Australia."
"Demand for standard variable home loans represented 26% of all loans approvals in Western Australia, which is up on the previous month of 24% and above the 12-month average. This result is lower than the national average of 30%. Demand for this category of loan is still very much driven by the discounts offered by lenders when the loan is $250,000 or more."
Basic variable loans demand in Western Australia stood at 27%, which was down on the previous month of 29%.
At the same time line of credit loan demand dropped to 22% for May 2007 down from 25% last month.
