Refinancing up as property investors flee

Refinancing accounted for close to two in five mortgages in Australia Finance Group's February 2008 sales, with property investors at their lowest percentage levels for 18 months.

Total loans originated by AFG's broker network in February dropped to 7574 compared to 8263 for the previous corresponding month, but remained higher than the seasonally sluggish months of December and January.

The refinancing percentage has increased every month since the 33 per cent twelve-month low in August 2007 and is now 38.4 per cent.

Property investors have dropped to their lowest monthly sales percentage in a year and a half at 29 per cent, and considering that total loan numbers for the past three months were eclipsed by nine of the previous ten months, the lower percentage has not been driven by an increase in owner occupied units, but rather an investor retraction from the market.