mortgage demand falls over 19% in 2010

http://www.brokernews.com.au/news/newsletter/81342

Mortgage demand edges higher
By Ben Abbott | 1/02/2011 5:00:00 AM | 0 comments
Mortgage demand in the final quarter of 2010 was down 16% on the heights it achieved during the same period in 2009, though it increased when compared with the most recent September quarter.

Recently released Veda Advantage figures show that mortgage enquiries during the October to December period fell 16% when compared with the final quarter of 2009, though mortgage applications were up 3.4% when compared with 2010's September quarter.

The final quarter's comparative decline was less than the 23.6% measured during July to September, when compared with the same period in 2009, and the 20% drop in the three months to the end of June.

?Mortgage applications over the past two years appear to have been demonstrably impacted by the GFC," said Veda Advantage's head of consumer risk, Angus Luffman.

"Mortgage applications declined in late 2008 and then strengthened in 2009 during the Government stimulus, before winding back in 2010," he said.

"Overall, mortgage demand fell by more than 19% on average across the 2010 calendar year," Luffman added.

Among the states and territories, the biggest year-on-year fall was in Queensland, which saw a drop of 24%, while the smallest was in the ACT, which was only down 8.6% on the corresponding 2009 quarter.

However, all states and territories were up on the September quarter, with the highest jump (8.7%) recorded by the Northern Territory.