Reduction in Home Loans
DEMAND for home loans eased for a second straight month in August, coming off the boil even before yesterday’s first official interest rate rise in 19 months.Official data released showed 62,718 mortgages were granted in August, an 0.6 per cent seasonally-adjusted decline from the previous month.
Economists’ forecasts had centred on a 0.5 per cent decline in the number of owner-occupier commitments in the month.
A downwardly-revised 2.2 per cent fall in demand for home loans in July ended nine straight months of growth.
Notably, first time buyers were again less active in the home loan market, making up 24.7 per cent of mortgages in August.
This was down from a record 28.5 per cent in May, lifted by the federal government’s more generous first homeowners grant.
The grant was wound back to $10,500 for established homes and to $14,000 for new properties from October 1.
Article Source: News.com.au
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