AFG reports record mortgage sales in October
Mortgage broker AFG has reported record sales for October, with demand for home loans rising by 14.6 per cent on the previous month.
House hunters secured credit worth $3.1 billion and this seemed to buck a wider national trend of poor mortgage uptake.
Indeed, the Reserve Bank of Australia (RBA) recently revealed that credit growth was at record lows in September, but AFG – which accounts for around one in ten home loans issued in Australia – has been performing well.
As ever, interest rates are hugely important in this particular sector and all eyes will be on the RBA this week, as board members will decide whether the national cash rate should be dropped from its current level of 3.25 per cent.
General manager of sales and operations at AFG Mark Hewitt said the demand for mortgages is stronger in certain parts of Australia than others.
"We're not seeing a surge of confidence sweep across the country, but different categories of borrowers in different states are feeling more comfortable about taking on loans," he remarked, before adding that New South Wales is by far the most popular state for property investors at the moment.
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