Rates stifle mortgage holder spending
By
Ben Abbott
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4/08/2010 5:55:00 AM
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Recent interest rate hikes caused mortgage holders to put off spending in 2010, a new survey claims.
A national survey has found almost one in two Australians with a mortgage revised their buying decisions in the six month period to 30 June, as a result of rate hikes that began late last year.
The Australian National Retailers Association (ANRA) and American Express survey found 24% of respondents with a mortgage had delayed purchases of large items costing over $500 during the period, while a further 24% had only made purchases if they were on sale.
Overall, 31 per cent of the 1000 participants in the survey said interest rate increases had affected their buying decisions on major items during the past six months.
ANRA chief executive Margy Osmond said the results were unsurprising but concerning for the retail sector. “Since November last year the retail sector has been operating in a roller coaster sales environment that has been creating a great deal of uncertainty and these results are evidence that higher interest rates – and the expectation of more – are starting to bite,” she said.
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