Interest rates 'are scaring off house hunters'

Thursday 08 March 2012

Article by Mozo

High interest rates attached to home loans are "scaring off" potential house buyers throughout Australia.

Research conducted by realestateVIEW.com.au found that the number of people actively searching for a new home currently stands at 32.7 per cent, which was down from 43.5 per cent in 2011, the Australian Associated Press reports.

The study indicated that the biggest concern of would-be house hunters was the current uncertainty surrounding interest rates.

Despite making two consecutive rate cuts towards the end of last year, the Reserve Bank of Australia has decided against further adjustments to the cash rate this year and this has prompted many banks to hike their own mortgage rates.

General manager at the website Petra Sprekos said that many people are adopting a "wait-and-see approach".

"Our survey shows that while interest rates are a key concern for buyers, there are other factors such as household expenses and job security influencing their ability to purchase," she was reported as saying.

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Interest rates 'are scaring off house hunters'

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