Home loan approvals bounce back in February

Font size :
After hitting an eight-year high in December and immediately pulling back in January, the number of home loans approved in Australia last February once again rose by 1.5 per cent, indicating a solid demand for housing despite the seasonal market cooling. According to the Australia Bureau of Statistics, it was still a modest rise in spite of the two per cent forecast made by housing analysts.

Lending to owner-occupiers enjoyed a boost of 1.7 per cent this February while approvals for investment housing also went up 4.1 per cent, based on their value. The value of total housing finance increased by 2.6 per cent in the said month.

David Cannington, senior economist of ANZ, said that the result conforms with the healthier-looking house prices and auction clearance rates. However, he expects sales activity indicators to remain timid in the months to follow.

"Sales market activity definitely has improved in recent months compared with the end of 2015, but the improvement has been quite tentative," Cannington said. "Some of the increases in mortgage rates and the impact of tighter regulation, particularly on investor sales activity, are creating some headwinds."

He also noted that the Reserve Bank, with its decision to put the cash rate on hold at a record low of two per cent for the 11th consecutive month, had been aiming for a slowdown in the increase in house prices. The data released for February may have eased them a little. ANZ predicts that the cash rate will remain on hold for the remainder of 2016.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Friday, Sep 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords