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Rising interest rates 'prevent people from seeking mortgages'

People considering seeking mortgages for property in Australia are being put off by increases in the country's interest rates, the Real Estate Institute of Australia has suggested.

Increases in the country's interest rates prevent people from seeking mortgages for property in Australia, a real estate expert has suggested.

David Airey, president of the Real Estate Institute of Australia, said that recent housing finance figures from the Australian Bureau of Statistics for December 2010 would have been higher if it had not been for the interest rate hikes last year.

"We are seeing the cumulative effect of seven increases in official rates between October 2009 and November 2010," he explained.

"First home buyers have been hardest hit by the effect of interest rate rises," Mr Airey added.

He went on to say that the low level of finance commitments to first home buyers was "a concern".

Back in September, Kevin Matthews, executive director for mortgage broker AFG, told the Australian newspaper that people looking to buy their first homes were returning to the Australian property market.

Posted by Craig Francis

- property, rates, interest, mortgage, bank

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