The latest figures from the Australian Bureau of Statistics revealed that the value of home loans dropped by 1.8 per cent from March to April. The value of all dwelling commitments written throughout April was only $31.99 billion.

This could be an indication of refinancing activity, according to Mortgage Choice chief executive officer John Flavell. He also pointed out that despite the drop in value, the property market remains relatively robust as the number of home loans written increased by 1.7 per cent from March to April.

“This level of growth is quite impressive and serves to highlight how strong the Australian property market continues to be,” Flavell said. “Over the months ahead, I would expect home loan demand to remain strong, especially as the latest round of home loan interest rate cuts start to filter through the market.”

Flavell concluded that the lenders’ passing of interest rate cuts can also pull down the cost of borrowing, hence keeping the Australian property market afloat.