The number of fixed loans in Australia rose to a 31-month high in December 2010, according to figures released by Mortgage Choice, Australia’s largest independently-owned mortgage broker.
Data from Mortgage Choice showed that fixed-rate mortgages rose in December for a third consecutive month, making it the most in-demand month for fixed mortgages since May 2008.
It said that fixed-rate mortgages accounted for 15.2 percent of the total loans approval in December, more than triple compared to the 12-month average of 4.2 percent.
“It’s obvious that concerns about utility bills and other living cost hikes along with predicted rate rises for 2011 are having a noticeable effect on the purchase decisions of new borrowers. Home loan commitments are no exception,” said Kristy Sheppard, a spokesperson from Mortgage Choice.
She added that fears about rising costs and mortgage rates had prompted borrowers to compare mortgages and consider fixing.