The value of new household loan commitments rose 0.6% in April, seasonally adjusted, according to the latest figures from the Australian Bureau of Statistics (ABS).
The rise comes after a 3.3% decline in March. However, from one year to the next, the total amount of new loans to households remained below that of the previous year, down 15.6%.
New housing loan commitments increased slightly by 0.2% from March to April, with a 1% increase in owner-occupied housing loans. In contrast, loans for investment housing fell 2.2%.
"The sharp decline in homeowner loan commitments since the end of 2017 appears to be slowing, with homeowner loans recording the smallest monthly decline in trend (down 0.5%) since April 2018," Bruce said. , chief economist, ABS told Hockman.
The report reported a slight increase in the number of loans granted to first-time homeowners (0.1%) in April, while the number of loans to non-homeowners occupying a first house decreased by 2% [
The number of housing loans granted by owner-occupiers (excluding refinancing) decreased by 1.1%. Including refinancings, loans decreased by 1.2%.
"The housing market continues to rebalance. Homebuyers continue to take a larger share of the market. And the average mortgage, although slightly behind the year, remains at historically high levels. With lower purchase prices and lower interest rates from generation to generation, some budding buyers could use the current conditions to trade. The number of homeowner loans declined in April, but the value of loans has increased, said Craig James, chief economist at CommSec.
The Reserve Bank of Australia recently lowered the policy rate to 1.25%, while the Australian Prudential Regulatory Authority proposed to lighten the APRA guidelines for smooth operation. According to Maree Kilroy, an economist at BIS Oxford Economics, these two developments are favorable to investment in housing.
"We expect further rate cuts before the end of the year. This will materialize positively in loan data for home loans set in three to six months, "said Kilroy.
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