Home loan customers are opting for fixed rates
Aussies are increasingly wary of mortgage interest rate fluctuations and this has been reflected in the type of home loans that house hunters are choosing.
According to the Australian Bureau of Statistics, the number of people taking out fixed-rate mortgages grew sharply in March 2012.
The figures showed that 7,060 fixed-rate products were snapped up throughout the month, which was the biggest uptake since May 2008.
"[Aussies] fix when rates are about to go higher or when they see the fixed rates on offer look like good value," commented ANZ housing economist Paul Bladdick.
Australians are worried that they will be affected by rising interest rates when taking out a mortgage, but the decision to opt for fixed terms may come back to haunt some people.
The new data relates to March – when the national cash rate stood at 4.25 per cent.
Of course, the Reserve Bank of Australia lowered this by 50 points at the start of this month, which will have come too late for those who signed a fixed-rate deal earlier in the year.
Have a question about home loans? Ask the money gurus at Mozo Answers.