By: Staff Reporter
Mortgage sales fell 15.6 per cent between March and April this year on the back of rising interest rates, the latest data from AFG has found.
According to the AFG Mortgage Index, the number of mortgages arranged nationally by the aggregator fell from $2.7 billion in March to $2.3 billion in April this year.
NSW saw the largest decline of 19.9 per cent from March, followed by Queensland, which fell by 16.4 per cent.
AFG general manger sales and operations Mark Hewitt said the latest data should give the RBA Board some food for thought when it meets later today to discuss the impact another potential rate hike will have on the broader community.
“It’s hard for ordinary families to make the huge financial decision to buy a property when they don’t know what repayments will be in three months time, let alone next year,” he said.
But while rising rates continues to plague general borrowers, Mr Hewitt said investors were in a far better position.
“Investors are somewhat more insulated. They may have the option of rent rises or negative gearing to protect them,” he said.
“This is why we’re seeing the emergence of a two tier mortgage market.”
Investor loans accounted for 36.9 per cent of all mortgages arranged in April, followed by refinancing loans at 36.6 per cent.
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