BIGGEST MONTH FOR MORTGAGE SALES IN 3 YEARS – MAY FIGURES
AFG, Australia’s largest mortgage broker, processed more home loans in May than in any month since March 2009, according to figures published today. The AFG Mortgage Index shows that the company processed over $3 billion in loans during May. AFG has approximately 10% of the total mortgage market (Source ABS and AFG statistics).
Leading the country was Western Australia, where home loans processed hit an all time high of $683 million for the month. This was second only to NSW ($812m) with VIC ($641m) and QLD ($627m) trailing behind.
Mark Hewitt, General Manager Sales and Operations says: ‘The automatic assumption would be that we’re seeing the effect of the rate cut at the start of May, but that’s only part of the story. We’re probably also seeing more borrowers turn to brokers to help them get the best deal in an increasingly competitive and complex market. In addition, May is generally a stronger month, after the public and school holidays in April.
‘These figures do not conflict with the softening house price data published late last week.
Mortgages are processed before sales are confirmed, so our data is more a snapshot of where we are right now. Reduced property prices and interest rates are bringing more people back into the market, but anecdotally, many potential borrowers are still worried by both the offshore news as well as weakening conditions at home.’
Fixed rate home loans remain near all time highs (19.7%) confirming continued borrower uncertainty.
AFG’s Mortgage Index also shows non major lenders deepening their reach into the first home buyers market, where in May they accounted for 33% market share.
Download – June Mortgage Index – National