Fixed rate demand increases: Mortgage Choice

Following yesterday's story that the big four banks have lifted their fixed-term mortgage rates, the demand for fixed loans has crept higher in the month of October, according to Mortgage Choice.

According to the national new home loan approval figures, fixed rates accounted for 27.38% of all home loans in October, higher than 26.8% recorded the month prior.

“While we have seen a number of lenders lift the interest on their suite of fixed rate products this month, the reality is, fixed rate pricing is still incredibly competitive,” says Mortgage Choice spokesperson Jessica Darnbrough.

“Furthermore, fixed rate pricing is likely to climb higher over the coming months.

“For those borrowers who want certainty around their mortgage repayments and wish to lock themselves into a product with a competitive interest rate, fixed rates are a viable option,” says Darnbrough.

Western Australia recorded the biggest increase of 8.77% to sit at 28.06%.

Fixed rate demand climbed in every state except SA and QLD, which fell 4.39% and 4.52% respectively to 19.99% and 31.88%.

“While Queensland recorded a significant drop in demand for fixed rates this month, the fact that this product still accounts for over 30% of all new home loan approvals suggests Queensland borrowers are still feeling relatively uncertain about current economic conditions.

“Of course, the same cannot be said for South Australia, where fixed rate demand hit its lowest level in eight months,” says Darnbrough.