Confidence levels in the nation’s property industry remain strong... Fixed rate loans push forward over December...
Property to remain growth driver for economy in 2016
Despite predictions that levels of housing construction will fall away over 2016, confidence levels in the nation’s property industry remain strong.
According to the latest quarterly ANZ/Property Council Survey, those within the industry believe it would continue to be one of the national economy’s heavy lifters over the coming year.
“Property will still be a growth driver for the economy in 2016, even with an expected easing of housing construction levels,” Property Council of Australia chief executive Ken Morrison said. “Industry confidence levels remain strong, forward work levels and staffing expectations are positive, and the industry expects non-residential construction to improve.”
According to the survey results, confidence in the property industry rose by one point nationally over the December quarter to 131, despite confidence decreases in New South Wales, the ACT and Western Australia.
A score of 100 or more is considered a positive outlook, with Tasmania’s home to the highest confidence level at 158.
In depth: 2016: No crystal ball required
Fixed rate loans push forward over December
More data has pointed to a resurgence in the popularity of fixed rate home loans, a trend that is predicted to continue during 2016.
National lending figures released this week by Mortgage Choice have revealed that during December fixed rate loans accounted for 19.44% of all home loans written during the month.
That figure represents a month-on-month increase from November, when fixed rate loans accounted for 17.39% of all loans and is the second straight month fixed rate loans have increased their market share.
Mortgage Choice chief executive John Flavell said the increase in fixed rate loans was hardly unexpected given the recent interest rate rises levied by many Australian lenders.
“This spike in demand for fixed rates comes just months after the majority of Australia’s lenders lifted the interest rates across their suite of variable rate home loans,” Flavell said. “A lot of mortgage holders are now acutely aware that Australia’s banks can and will lift their variable rates as they see fit. As such, it isn’t surprising to see an increasing number of Australians opting for the security of a fixed rate home loan,” he said.
In depth: BDM in the spotlight: Mary Tarling
Despite predictions that levels of housing construction will fall away over 2016, confidence levels in the nation’s property industry remain strong.
According to the latest quarterly ANZ/Property Council Survey, those within the industry believe it would continue to be one of the national economy’s heavy lifters over the coming year.
“Property will still be a growth driver for the economy in 2016, even with an expected easing of housing construction levels,” Property Council of Australia chief executive Ken Morrison said. “Industry confidence levels remain strong, forward work levels and staffing expectations are positive, and the industry expects non-residential construction to improve.”
According to the survey results, confidence in the property industry rose by one point nationally over the December quarter to 131, despite confidence decreases in New South Wales, the ACT and Western Australia.
A score of 100 or more is considered a positive outlook, with Tasmania’s home to the highest confidence level at 158.
In depth: 2016: No crystal ball required
Fixed rate loans push forward over December
More data has pointed to a resurgence in the popularity of fixed rate home loans, a trend that is predicted to continue during 2016.
National lending figures released this week by Mortgage Choice have revealed that during December fixed rate loans accounted for 19.44% of all home loans written during the month.
That figure represents a month-on-month increase from November, when fixed rate loans accounted for 17.39% of all loans and is the second straight month fixed rate loans have increased their market share.
Mortgage Choice chief executive John Flavell said the increase in fixed rate loans was hardly unexpected given the recent interest rate rises levied by many Australian lenders.
“This spike in demand for fixed rates comes just months after the majority of Australia’s lenders lifted the interest rates across their suite of variable rate home loans,” Flavell said. “A lot of mortgage holders are now acutely aware that Australia’s banks can and will lift their variable rates as they see fit. As such, it isn’t surprising to see an increasing number of Australians opting for the security of a fixed rate home loan,” he said.
In depth: BDM in the spotlight: Mary Tarling
