Home Loans Gain a Rise of 1.0 per cent unexpectedly
All the major economists in Australia were expecting a 2.0 per cent fall in home loan approvals for the month, but the ABS statistics released today had left all of them in shock as the home loans gain a rise of 1.0 per cent.
According to the data there were 53,951 approvals in April, compared to 53,442 approvals in March. The value of total housing finance rose 2.9 per cent in the month to $32.71 billion.
As an attempt to stimulate the economy, RBA have made the cash rate cut of .25 per in February month and then further .25 per cent in May. Investor housing loans were up 2.6 per cent in April, after a 6.4 per cent increase between February and March.
ABS data also shows the growth of first home buyers that were dipped in the previous months. If we talk about figures total owner occupied housing finance commitments rose to 15.2 per cent in April after falling to 14.7 per cent in March from February’s 15.1 per cent. Stricter lending standards are also there in the banks so as to avoid overheating investor lending growth in Australia.
Assistant Treasurer Josh Frydenberg said, “On the weekend there was no housing bubble in Sydney, despite Treasury Secretary John Fraser telling a Senate hearing last week that Sydney and parts of Melbourne were “unequivocally” in a housing bubble.”
CoreLogic RP Data also showed that, “Australian home values fell 0.9 per cent in May – the first monthly drop since November 2014 – but had still surged 9 per cent over the past 12 months, and jumped 15 per cent higher in Sydney alone.”
News Source: http://www.theaustralian.com.au/news/home-loan-approvals-beat-expectations/story-e6frg6n6-1227389528878