According to Mortgage Insurer Genworth, Mortgage demand is down approximately 20%. Despite this the company is fairly positive about future outlook.
Certainly the demand for high LVR products insured by Genworth is probably down by as much as 30%.
But even with the 30 per cent slump in demand, Genworth continues to perform well and expected further improvement in the second half of the year.
The overall mortgage market environment is such that both consumers and lenders are more cautious and this has the affect of reducing the number of mortgage deals going to a Mortgage Insurer.
During 2009 historically low interest rates had helped home affordability, while the boosted first home owner’s grant had lifted credit demand, leading to higher premium income for Genworth.
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