The latest AFG Mortgage Index has revealed that the number of mortgages being sold to first home buyers has fallen by 30.6% in three months.
According to the Index, 19.5% of all mortgages written in June 2009 were to first home buyers, compared to 28.1% three months earlier.
LVRs, expressed as a percentage of property values, fell to 66.9%, down from 73.7% in April 2009. This confirms the trend that first home buyers now have much bigger deposits, AFG said.
The company’s general manager of sales and operations Mark Hewitt said despite the decline in first home owner activity, there are still a number of signs to suggest the mortgage market is stabilising.
On the positive side investor confidence continued to grow in June 2009 with the proportion of loans to investors rising to 29.0%, up from a low of 24.5% in March 2009.
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