The demand for home loans has been affected by the recent interest rate hikes, one industry expert has said.
The recent
interest rate hike by the Reserve Bank of Australia (RBA) is starting to affect the demand for home loans, according to one industry expert.
JP Morgan economist Helen Kevans said it is "pretty clear" this is the case, the Australian Associated Press reports.
She added: "We think the RBA will be pausing next month and that will allow them more time to assess the impact of the rate hikes they've already implemented."
But the last two increases could have had an affect on the housing industry as data from the Australian Bureau of Statistics shows that property loan requirement decreased for the sixth successive time in March.
There were 48,260 home loans granted in March, down 3.4 per cent on February.
Since the latest rate hike by the RBA, the National Australia Bank – which offers a range of
bank accounts - has increased the rate of its savings accounts by 0.25 per cent to match the official cash figure rise.
By Mark Hornby
