Demand for fixed-rate home loans climbed slightly higher in May, according to the latest loan approval data from Mortgage Choice. Fixed-rate home loans made up 18.2% of all loans written in May – up from 17.9% in April.

Mortgage Choice CEO John Flavell said demand for fixed-rate products hasn’t been this high since the beginning of the year. “Since the Reserve Bank of Australia cut the official cash rate to the new historical low of 2% at its May meeting, speculation has started to mount that we are now at the bottom of the rate cycle,” he said. “Following last month’s rate cut, the domestic economy has started to show signs of improvement and consumer sentiment has improved dramatically.”