Fixed rate demand has remained steady for November, although it remains double the level of last year.
Mortgage Choice data for November shows after months of making strides in popularity, demand for fixed rate products has levelled off. Fixed rate approvals remained fairly steady at around 20%, but are up nearly double on last year's figures of 11%.
With lenders increasingly dropping fixed rates below 6%, Mortgage Choice spokesperson Belinda Williamson said borrowers are capitalising on fierce lender competition.
"There has been a lot of rate movement in fixed rate loans in recent weeks and months. We’ve seen some fixed rate loan products almost a whole percentage point lower than lenders’ variable rates," she said.
Ongoing discount loans remained the most popular, accounting for 45% of the companies approvals. Williamson said demand for the products had risen steadily over the year.
Standard variable rates saw a slight uptick in popularity after falling out of favour with borrowers. The products rose to 17% of all approvals, up from 15% in October.
Consumer mortgage demand has 'flipped'
Fixing popular, but ongoing discounts king
Fixed rates spike as FHBs flock to market