According to Mortgage Choice data, fixed rate loans now account for only 2.3% of all new home loan approvals. That's the lowest level in a year.
People are generally choosing the basic variable or standard variable home loan options, but interest in professional packages continues to rise, with the number of people choosing these special packages going up by about 1.25 percentage points.
Basic variable home loans are most popular in South Australia. Queenslanders are all over professional packages, which have increased to 16.0% of all new home loan approvals, up from 12.6%. Victorians are shunning standard variable rate home loans, which fell to 19.3% from 20.9% – well below the national average of 31.6%
It seems property buyers are carefully weighing up the security of fixing their rate against the extra cost that fixing involves, with most fixed rates well above variable ones. There's good news, too, with the Reserve Bank meeting minutes suggesting that it is thinking of easing up on future rate rises. That's partly because many lenders have been increasing rates well above the Reserve Bank rises. Which is sending some people bananas.
Are you thinking of fixing? Or are you happy to float?