Mortgage sales experienced a surge to their highest volume in over eighteen months according to AFG's latest figures.

Surpassing total mortgage sales volumes last seen in March 2010, AFG processed over $2.7bn in mortgages in August, with a competitive lending environment ensuring that refinancing continued to drive the aggregator's business, accounting for 38.2% of all transactions undertaken.

Likewise, investors continued to contribute to AFG's performance, accounting for 36.5% of transactions.

AFG said that the figures trend well above seasonal expectations, despite August being a traditionally strong month.

Consumers also took the chance to fix their home loan interest rates, with AFG figures indicating a sharp increase in fixing, which jumped to 9.4% of all loans processed compared to 7.9% in July.

AFG general manager of sales and operations, Mark Hewitt, said that borrower expectations about interest rates shifted significantly during August.

"We're seeing a lot of refinancing as borrowers take advantage of discounted products," he said. "But we'd like to see lenders create more flexible and competitive products for the new home building sector. It isn't just consumer confidence that is holding back this sector, it is also the availability of attractive finance options." he said.