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Interest rates damage buyer confidence

Interest rates damage buyer confidence

by Reporter 0 comments

Jessica Darnbrough

Just 25 per cent of Australians think now is a good time to buy, new research has revealed.

According to Genworth's Homebuyer Confidence Index, housing affordability issues and rising interest rates are having a negative impact on buyer confidence.

Last year, more than 50 per cent of Australians thought 2009 represented a good year to buy.

This number has fallen sharply over the last year however, as rising interest rates take their toll on consumers.

"That said, there will still be opportunities for would be home buyers who are well positioned to service a loan but don't have a large deposit," Genworth's acting chief executive Paul Caputo told journalists yesterday.

Speaking at a Genworth media briefing in Sydney, Mr Caputo said lenders mortgage insurers were still insuring 95 per cent LVR loans to suitable applicants, which helps make home ownership possible sooner.

"Our historical modelling shows that while confidence has fallen slightly, it is significantly up on 2008 when falling interest rates could not offset recession fears," he said.

 

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