Data released by the Australian Bureau of Statistics has revealed that the demand for home loans has fallen since the RBA began to increase interest rates.
63,864 home loans were granted in October, a 1.4 per cent seasonally-adjusted decrease on the previous month.
26 per cent of the loans granted in the month were first home buyers in October, compared to 26.1 per cent in September and a peak of 28.5 per cent in May.
First home buyers were key players in the recovery of the lending market.
North Shore mortgage broker Tony Tong said he expected the number of first home buyers to decrease in 2010, however the number of mortgages to return to normal figures due to a resurgence of investors.
“The statistics may show an overall decrease in mortgage demand for October but with increased consumer confidence I am certain the market will return to normal in 2010,” he said.
Source: www.news.com.au, Loan Market
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