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The protracted pause on interest rates by the RBA is bringing first home buyers back to the market, Loan Market has claimed.
Loan Market spokesperson Paul Smith said the company has seen a 10% increase in enquiries from first time buyers in June. First time buyer represented 35% of the enquiries Loan Market received during the month, and Smith said waning fears over an interest rate hike may be the reason for the up-tick.
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"We have gone eight months without an interest rate rise and this has not only given a much needed reprieve to households dealing with increased costs of living, but has encouraged those looking to purchase their first home," Smith said.
Smith commented that first time buyers have been largely dormant for the past 12 months, and said their return signalled an increase in consumer confidence. As many economists now tip the RBA to leave rates untouched until 2012, Smith said consumers are showing increasing optimism in the face of affordability and cost of living concerns.
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