My assumption was based on the fact that many interest-only loans were taken out by property investors in the past two years.
Those investors were more likely to think that the interest rate would go down further or at least not going up in the near future and hence demand for their investment property would continue to be strong.
If those investors had anticipated that the interest rate would go up in the near future, then there would be fewer interest-only loans taken out during the past two years.
IMHO, few people would like to take interest-only loans if they can afford to pay the principle instalments at the same time.
There are other factors affecting investors behaviours of course. But interest rate movement is a major factor.
