Australian home loan approvals on the upThe Australian property market is finally showing a positive sign as home loan approvals register the biggest rise in nearly a year.
The most recent official data showed the number of home loans for owner occupiers approved in August rising 1.8% to 45,831, which is the highest level this year.
This rise in borrowing demand is down to a spate of interest rate cuts. Since the start of 2012, the Reserve Bank has lowered interest rates by 1% (now 3.25%), although the banks have not passed the full benefits onto borrowers. Only seven lenders of over 100 on the RateCity database have passed on the full 25 points.
The new report from the Australian Bureau of Statistics showed the value of housing finance rose 0.6% in August (seasonally adjusted) to $20.301 billion.
Queensland, New South Wales and Western Australia saw the highest rises, while Victoria stayed subdued with owner occupiers’ finance commitment down 1.2%.