Mortgage inquiries dip

Wary first-home buyers have recoiled from a cooling housing market, while economic pressures have boosted loan defaults by members of Generation Y.

Debt sees pair in caravan
Those aged 30 to 40 are retreating from the housing market where many expect price falls, figures compiled by Veda Advantage, a credit-check business, show.

The findings reinforce surveys that show an uncertain economic outlook, as the impact of the worldwide credit crunch – flowing from United States subprime mortgage defaults — widens.

Veda Advantage said home mortgage inquiry volumes fell 27 per cent in the last year to 275,000 from the 350,000 lodged in 2006. Inquiries in January 2008 were down 14% from January 2007.

Meanwhile, financially immature Generation Y members were missing payments on credit-card purchases, including cellphones and iPods, Veda Advantage New Zealand Country Director John Roberts said.

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