Refinancing borrowers take advantage of competitive market in June: AFG

Mortgage broker AFG recorded a noticeable jump in borrowers refinancing their mortgages in June, though the total number and value of mortgage arranged fell back following a very strong May.

AFG’s loan writers arranged 6,690 mortgages in June worth $2.64 billion, compared with 7,635 in May worth just over $3 billion.

The proportion of borrowers refinancing rose from 35.8% in May to 39.1% in June – almost two in five mortgages – as borrowers took advantage of lower interest rates on offer.

Mark Hewitt, general manager of sales and operations at AFG, says refinancing is currently very strong as borrowers take advantage of a more competitive market to secure a better deal.

AFG recorded that the popularity of fixed-rate home loans has fallen to its lowest point since September last year.

Fixed-rate loans peaked at 25.4% of all home loans arranged in March this year – the highest such level AFG has ever recorded.

Since then, there has been a steady decrease in borrowers looking to fix rates, and in June 16.5% opted for a fixed-rate mortgage.

“It’s significant that, as we begin a new financial year, the vast majority of borrowers are opting not to lock in an interest rate. Most see a period of stable or even softer rates for the foreseeable future,” says Hewitt.

{module What do you intend to do given the current interest rate fluctuations?}