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New fixed rate data from Mortgage Choice has corroborated Citibank's claim last week that the current uncertainty in Europe is leading to rare fixed rate opportunities in Australia, and pushing the popularity of rate locking here to new heights.
The mortgage brokerage's November national loan approval data has revealed that fixed rate demand has doubled in the past 12 months - and in November it peaked to a level not seen since April 2008.
Earlier, Citibank's Vibha Coburn had said the European malaise was prompting a very uncommon inverse yield curve phenomenon, where some longer term rates are consistently lower than short term ones.
Meanwhile, the latest Mortgage Choice data shows fixed rates accounting for as much as 20% of all new loan approvals during November.
This is up on both the six-month average of 16% and the 12-month average of 14%.
At this time last year only 11% of new loans were booked against fixed rates.
Confirming the evidence of Citi's rare inverse yield event, Mortgage Choice spokesperson Belinda Williamson said she has seen some fixed rate loan products almost a full 100bps lower than their variable rate equivalents.
"It is evident fixed rate loans have become far more popular," she added.
"There has been a lot of rate movement in fixed rate loans in recent weeks and months," Ms Williamson said.
Ms Coburn called the inverse yield curve "a rare occurrence", but said it is one that people financing their homes should understand.
Rare market phenomenon guns new Citi rate slash - The current uncertainty in Europe has lead to an inverse yield curve phenomenon which paradoxically means more certainty for mortgagees in Australia, according to Citibank's Head of Mortgages Vibha Coburn.
Aussies keen to buy property, but wary still - survey - The current interest rate climate is encouraging some Australian's back into the property market, but many more will continue to give it the cold-shoulder regardless of rate movements, Mortgage Choice's eighth annual national Consumer Sentiment Survey has found.
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