Rate cuts will do that. Australia's largest mortgage broker, AFG, reports a stunning result today:
**Highest February mortgage sales on record as fixed rate loans peak
**Average new home loan reaches $400k for first time ever
AFG, Australia’s largest mortgage broker, had its highest February sales on record, processing $2.8 billion of loans. This compares to $2.0 bn in February 2011 and $2.2 bn in February 2010. In a month when lenders decoupled from the RBA cash rate, announcing out of cycle rate rises, more new borrowers than ever before – 23.2% - chose Fixed rate loans. This surpasses the previous high of 20.4% for fixed rate loans recorded in October last year, and compares to a figure of just 6.6% in February 2011.
AFG Mortgage Index also shows that, for the first time ever, the average new home loan in Australia reached $400k – up from $385k in January and $382k in February 2011. Across the nation, NSW had the highest average new home loan - $471k, followed by WA - $421k and VIC - $409k, which has only recently broken through the $400k barrier.
