Upgraders cool as rates rise
By
Andrea Cornish
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10/06/2010 12:00:00 AM
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The number of people upgrading or moving home in May fell to 15.4% - the lowest level recorded for a year.
According to the AFG Mortgage Index, the figure is well below the 18% average for the last six months of 2009, before the RBA began raising rates.
The largest proportion of mortgages (38%) were arranged for refinancing purposes, while investors continued to dominate the market – taking out 36.7% of mortgages. First home buyers made up 9.9%.
"May was very much a month of two halves for us," Mark Hewitt, GM of sales and operations said. "We started the month with strong demand, particularly from investors, but the May rate rise, combined with all the other worrying economic news, really took all the heat out of the market."
Hewitt said he has spent the past week meeting brokers from around the country and the feeling is one of deepening concern.
"After a period of rebuilding confidence and return to normal market conditions last year, people are feeling quite uncertain about the state of the economy," he said.
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