Increased mortgage activity is a positive indicator for the market, according to RP Data.
According to RP Data’s Monthly Mortgage Market Index, mortgage activity continued at robust levels in March – building on the growth that was achieved in February.
RP Data’s head of corporate affairs Craig MacKenzie said the Mortgage Market Index currently sits at 91.1 – 6.8 per cent higher than February.
“This strong national result may be partly indicative of a seasonal lift in mortgage related activity, but also appears to be driven by increased activity from borrowers looking to take advantage of refinancing opportunities with low interest rates and investors also being increasingly active in the market,” he said.
“However, the strong result comes at a time when we are also seeing a sustained lift in many other housing market measures, including a recovery in dwelling values, higher auction clearance rates and less discounting from vendors. It will be important to monitor activity across our finance platforms over the coming weeks to see if the level of activity is maintained.”
At a state level, Mr MacKenzie said Western Australia continued to perform well, driven by the strong resources sector.
Perhaps more surprising was Victoria’s return to form, with the state recording a lift in mortgage activity.