The fact that the RBA has failed to cut rates over the past few months is having little effect on the housing market, with borrowers reportedly shopping for properties at a record rate.
The number of Australians shopping for a home loan online through Google searches is expected to hit over 3.6m this month alone, according to research by finder.com.au, while the total number of settled home loans is forecast to reach almost 63,000 for October. If it does, it will be the first time above 62,000 since November, 2007.
According to the site’s spokesperson, Michelle Hutchison, the above information was based on a typical home loan application cycle of 13-17 weeks. Using this timeframe, it appears that 2.21% of all home loan searches through Google turn into settled loans three months later, based on the average per month since January this year.
Furthermore, Hutchison says she expects the home buying frenzy to continue.
"We are finding that internet traffic is a very powerful tool in predicting consumer behaviour. Whether it's a pair of shoes or a home loan, the internet is where most people now start their shopping journey by learning about products, asking questions - we've answered over 7,000 on the site to date - how others review them and how they compare in the market.
"Because we're seeing so much activity online with Australians shopping for a home loan, there's no doubt that this home buyer frenzy will continue this mortgage season."