Mortgage Applications Rise Upwards

Here is an interesting article from the Herald Website:
Baby boomers are returning to the housing market in droves – but younger first home buyers are still doing it tough.
Mortgage applications last month were up 38 per cent compared to the same month last year, and were the highest monthly total since November 2007.
The information was supplied by credit information firm Veda Advantage.
Baby boomers (44-62 years old) in particular appear to be showing a disproportionate interest in the housing market, with a 45 per cent increase in mortgage applications on March 2008.
Generation X (28-43 years old) experienced a 34 per cent increase, while Generation Y (less than 28 years old) had the smallest growth with a 16 per cent increase on March last year.
“We are experiencing a level of activity in mortgage applications that we have not seen since house prices began falling in late 2007”, said Veda Advantage (NZ) chief John Roberts.
“This activity reflects the lower interest rates stimulating demand, and shows the market going to fixed terms to lock in these rates.”Roberts went on to say the much larger increase in the number of baby boomers applying for mortgages, compared to younger age groups, suggests that they are more cashed up and in a better position to snap up perceived bargains in the housing market.  Generation Y have increased only marginally over March 2008
My take on this is people in general have been taking advantage of the lower interest rates avaliable at the moment. But the big point to consider is that now because of the lending criteria being so tough ie 20% it is hard for the younger people (gen y) to get the loan. Naturally the older generation of people have a bit of money behind them, possibly in equity and or savings. Leaving the younger generation with out of the equation.
Most of the older generations of people (generation X and the Baby Boomers) will probably have their own properties already and could be buying an investment property to fill up their nest egg for retirement.
My question to you is… Due to the current trend we are seeing here are we going to see a huge influx of rental properties come up for rent soon and in 10 to 15 years time when these older generations come to retirement and cash in their nest eggs, are we going to see this influx of rental properties come to the market again?? Makes you think doesnt it.

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