August sales slump as borrowers ?fence sit?

Staff Reporter Thursday, 4 Sep 2008 3 minute read

Mortgage sales dipped by 20 per cent in August for aggregator AFG, the group’s Mortgage Index revealed yesterday.

Mark Hewitt, AFG general manager of sales and operations, said the figure indicated borrowers had decided to fence sit as a result of RBA minutes issued last month which suggested a rate cut would be made in September.

“Our members have been speaking to a lot of potential borrowers who were waiting to see what happens with rates,” he said.

Mr Hewitt said the RBA’s release of policy meeting minutes was a positive way of keeping the public well-informed, but commented that continued flagging of future rate falls could contribute to a “slower than hoped for recovery due to the fence sitting mentality of investors and consumers”.

Borrowers pulled back from the market most in NSW, with a 31 per cent drop in sales compared to July.

Queensland was least affected with sales falling 10.8 per cent.

Published: 04-09-08

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