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Jessica Darnbrough
Refinancing will continue to dominate market activity, according to leading industry stakeholders.
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Speaking to The Adviser, RP Data’s Cameron Kusher said refinancers would continue to be very active in the mortgage market, thanks to the recent spate of rate cuts.
“Confidence isn’t high at the moment, so first home buyers aren’t jumping onto the property ladder. That said, rates are coming down and property prices are stagnating, so it is a good time for refinancers to upgrade or review their investment options,” he said.
Mr Kusher’s comments were echoed by Better Mortgage Management’s Murray Cowan who said the state of the market had provided refinancers with good opportunities.
“Moving forward, refinancers and investors will be the dominant market segment. Right now refinancers are dominating because confidence is not strong, but I expect this to turn around. I think confidence will return and when it does we will see both refinancers and investors in the market,” he said.
Mr Kusher and Mr Cowan’s comments closely align with data from AFG which found refinancers dominated mortgage activity last month.
According to the latest AFG Mortgage Index, 39.1 per cent of borrowers refinanced their home loans in June – a 12 month high.
