Demand for home loans Plunges

by Leon 13/05/2010

 Home loan demands continuously fall

Home loan demands have declined for six consecutive months, from October last year to March, due to ever mounting interest rates.

According to the Australian Bureau of statistics there were only 48,260 home loans granted in March, which revealed a 3.4 % fall from February. This is the smallest amount of home loans awarded in a month for nine years.

Number of first home buyers taking on loans is down to 16.1 % in March. In February it was recorded at 18.1 % while a 28.5  percent in May last year pointed up the imminence of the first home owners grant.

Cash rate has increased twice since March this year, now up by 4.5%. The Reserve Bank of Australia is expected to raise further the rates within the year, with five percent predictable climb in money markets.


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