More Australian homeowners are considering fixed-rate mortgages given the unpredictable direction of interest rates, according to a survey.
The study done by mortgage broker Loan Market revealed that 60 percent of respondents are eyeing fixed-rate mortgages because they are unsure whether banks will follow the rate decisions of the Reserve Bank of Australia (RBA).
“The banks, acting independently of the RBA and lifting their variable rates, has caused quite a bit of concern and confusion among consumers,” said Paul Smith, a spokesman at Loan Market.
The online survey also revealed that 46 percent of the 764 respondents stated that they are certainly considering a fixed rate mortgage, while 14 percent said they will possibly fix part of their mortgage.
“With attractive fixed products still available and the European debt crisis remaining unresolved, some consumers may seek the comfort of locking in their mortgage rate for a few years,” noted Smith.
Based on recent figures from the Australian Bureau of Statistics (ABS), 11.4 percent of mortgages approved in January were fixed-rate loans for two years or more. This number is slightly lower than the 11 percent recorded in December 2011, which was the highest monthly percentage since June 2008.
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