Mortgage report highlights optimism in residential property
The Australian Mortgage Council has released its report on the Australian home and investment mortgage market for March.
The findings will be of interest to anyone buying a house and considering their mortgage options.
The report highlights the overall optimistic outlook on the domestic economy as a backdrop for many of the positive growths, with the unemployment rate remaining flat, and the Reserve Bank of Australia's decision to leave the cash rate on hold at three per cent.
As for the proportion of first time buyer loans, these remained steady at 14.9 per cent - the lowest figure in almost ten years (since June 2004).
In year-on-year terms, between January 2012 and January 2013, the number of refinanced dwellings fell by ten per cent and 0.7 per cent of that fall occurred in the December 2012 to January 2013 period.
The council suggests that some of this decline may be attributed to the fall of interest rates over the same period, as borrowers' monthly repayments decrease and discourage refinancing.
Refinanced loans, however, underwent an average value rise of 0.3 per cent for those borrowing with banks, and by six per cent for those borrowing with non-banks.