Despite market challenges, borrower sentiment is still positive.

Despite market challenges, borrower sentiment is still positive

By: Nfinity Financials0 comments

News Highlights
The housing market is adapting to a new environment with higher interest rates and affordability pressures. While refinancing activity is declining, purchase demand remains present, indicating a potential for continued market activity in 2024.

According to the first edition of the, almost four out of five borrowers are sacrificing something to make their house loan payments on time.

According to the report, 78% of borrowers have cut back on eating out, entertainment, and holidays to manage their mortgage payments. Customers are letting us know that they are still having difficulty making their home loan payments.

Potential Customers Postponing Purchase

Given that 57% of potential buyers are deferring their choice to buy until 2024, the real estate market is expected to be active. The value of purchase submissions increased by 17.5% in the report as compared to the March quarter before.

Customers who are driven to take action on their real estate plans are expressing cautious optimism, according to our brokers. Changes in the loan purpose

Loan PurposeChange in Submission Value
Purchase17.5%
Refinance-25.9%
Construction26.2%
Others24.3%
Total0.8%

Rising Loan Sizes Reflect Property Prices

The average loan amount made nationwide increased to $583,416 in 2016, a -9% annual rise. According to the Report, national home prices are 7.1% higher than they were in March 2023, with capital cities having the highest median home value at $832,000.

The average loan size and submission values increased year over year in the first quarter of 2024.

Average loan size across territories over the March quarter

StateValueChange YoY
NSW/ACT$673,3757.7%
VIC/ TAS$614,6675.9%
QLD$543,27710.5%
SA/NT$527,86813.2%
WA$495,34311.6%
National$583,7659.0%

Diminished Refinancing Operations

From 40% of borrowings in the March quarter of 2023 to 26% in the March quarter of 2024, refinancing activity has decreased. Lender retention strategies and interest rate stabilization are blamed for this decline.

Brokers across the nation are informing us that a lot of our customers don’t meet the serviceability requirements for a new home loan, so it has gotten harder for them to refinance. The days of fixed rates under 2% are long gone, and borrowers would now be hard-pressed to secure a fixed-rate below 6% annually.

Our Roles Are Aligned With Your Goals

  • Overcoming obstacles related to affordability: Even in a difficult market, our knowledgeable mortgage brokers will assist you in evaluating your financial status and locating the best loan solutions to suit your requirements.
  • Examining potential purchases: We can help you navigate the 2024 home-buying process and make sure you make well-informed choices based on the state of the market.
  • Recognizing your refinancing choices: Even though there hasn’t been as much Refinancing activity lately, we can still assist you in weighing your alternatives and deciding if refinancing makes sense for you in the present climate.

Get in touch with Nfinity Financial right now whether you’re a borrower experiencing financial difficulties, a prospective buyer arranging a purchase for 2024, or thinking about refinancing. Our mission is to assist you in reaching your financial objectives and navigating the housing market.

For more detailed information Read Our Related Articles or book a Consultation Call today with us at 1300 GET LOAN.

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