Demand for fixed rate loans among Queensland borrowers remained steady at 40 per cent during March 2008, as borrowers continued to show their concern about interest rate
increases.

However, this was substantially below the November 2007 high of 46 percent, the latest Australian Mortgage Choice housing loan approval data revealed.

Mortgage Choice national corporate affairs manager Warren O’Rourke said demand for fixed rate loans by Queensland borrowers eased somewhat in recent months, coming back from record levels experienced in November and December 2007.

Mr O’Rourke said fixed loans represented 40 per cent of all loan approvals in March, on par with February and in line with the 12-month average of 40 per cent.

Although concern remains that the Reserve Bank of Australia could further raise interest rates and further fallout from the global credit market situation could be forthcoming, it appears borrowers are slowly retreating from a fixed rate loan environment.

‘’ As consumers are less willing to shoulder higher costs associated with fixed loans, they are seeking alternatives loans such as standard variable loan products, which can carry discounts and greater flexibility,’’ he said.