Home loans customers have mixed feeling about economy

Wednesday 21 October 2009

Article by Mozo

Potential home loans customers have mixed feelings about the state of the economy.

The Westpac-Melbourne Institute Index of Consumer Sentiment showed an increase of 1.7 per cent throughout October.

It demonstrated a boost in people’s confidence. However, it also saw an 11 per cent fall in households’ opinions as to whether they should buy a new property.

According to the assessment, this represents the lowest level since November 2008.

Conversely, the outlook concerning property prices was more positive. Some 74 per cent said they expected values to increase – a rise compared to the 53 per cent figure in the July survey.

Furthermore, perceptions of family finances improved by 4.2 per cent, up on the previous year.

"Households were particularly confident about the near-term outlook," noted Westpac chief economist Bill Evans.

Meanwhile, the Real Estate Institute of Australia recently claimed that market interest from first-time buyers may decline as a result of a roll back of government stimulus.

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