Sales of home loans soar to 18-month high

Sales of home loans rose to the highest level seen for 18 months in August this year, according to new figures.

Data from mortgage broker AFG revealed that sales hit the $2.7 billion mark during this period and that there was an increase in the proportion of home loans taken out with fixed interest rates, reports the Australian.

Worries over a hike by the Reserve Bank of Australia may have been behind the rise from 7.9 per cent in July to 9.4 per cent last month.

The figures also showed that more than 38 per cent of all the mortgages sold during the eighth month of the year were for refinancing.

"We're seeing a lot of refinancing, as borrowers take advantage of discounted products," said AFG's general manager of sales and operations Mark Hewitt.

These findings contrast with assertions made by RP Data research director Tim Lawless, who recently told the Australian Associated Press that Aussies are still "reluctant" to commit to home loans due to the volatile financial and economic climate.

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