Housing affordability 'fair', borrowers locking in longer mortgages

Of the eight indicators, three were negative for house prices, one was neutral with a negative bias, one was neutral, two were neutral with a positive bias, and one was positive.

Affordability was neutral for house prices, which had regained some semblance of normality after a stabilisation in the market over the past four months, and borrowers were looking towards the future when reviewing their mortgages.

"A turnaround in household sentiment has resulted in borrowers wishing to lock in longer fixed mortgage rates ahead of an anticipated monetary policy response to growing economic momentum," the bank said in its commentary.

Still, the report warned that in previous cycles similar levels of improvement preceded an easing in prices.