January 07, 2015
Fixed rate demand has hit its lowest level in 22 months, new data has revealed.
According to the latest national home loan approval data from Mortgage Choice, fixed rate home loans accounted for just 22.29% of all loans written in December – down significantly from the 26.98% recorded the month before.
With speculation mounting that the Reserve Bank of Australia could potentially cut the cash rate again in the coming months, it is not surprising to see an increasing number of borrowers opting for a variable rate home loan.
At the beginning of December last year, speculation was rife that the Reserve Bank of Australia could cut the cash rate throughout 2015 and ongoing weakness in the Australian and global economy has encouraged some analysts to change their cash rate forecasts to include up to two further rate cuts.