Rate cut talk dampens fixed rate demand

Demand for fixed rate loans is falling after recent peaks according to new data from a mortgage broking group.

Fixed rate loans now account for 28.3 per cent of all new loans, down 1.8 per cent but still higher than June 2012 when demand for fixed rates was at 18.01 per cent. An analyst said the slight drop may be due to talk of further interest rate cuts.

In June, Queensland was the leader for fixed rate demand at 33.77 per cent, New South Wales was at 32.86 per cent, South Australia at 24.88 per cent, Western Australia at 23.11 per cent and Victoria at 20.29 per cent.

Source: The Adviser