Queensland led the country in "the best February ever" for mortgage sales according to the latest figures out this week from mortgage broker AFG.
During the surprisingly robust month, AFG sold a total of 8,263 mortgages, representing $2.5 billion in finance. This figure compares with $2.0 billion sold through the broker in February 2006 and $1.5 billion in February 2005.
Mortgage sales in Queensland led the way in February, increasing month-on-month by 18.6 per cent, from an already robust January, to a total of 2,889 mortgages, representing $843 million in finance.
Month on month sales bounced back by 30.2 per cent in New South Wales, where 1,610 mortgages were sold, and representing $593 million in finance.
There was also a 19 per cent surge in South Australia from $163 million in finance during January, to $198 million in February, and a 21 per cent uplift in Victoria from $314 million to $370 million.
Even in Western Australia, which seemed to skip its traditional January holiday with a strong first month, sales rose by 7 per cent to a total of 1,563 mortgages, or $514 million in finance.
Mark Hewitt, General Manager of Sales and Operations said that the record figures may be due to a feeling that interest rates are unlikely to rise much further in the near future.
"Confidence seems to be growing that we are at the top, or near the top, of the rate rise cycle."
AFG Mortgage Index also shows that investors comprised 30.4 per cent of all new mortgages sold by the broker on a national basis. This figure was lowest for South Australia (20.1 per cent) and highest for WA, where 45.1 per cent of all new mortgages were sold to property investors.
