The number of home loans approved in Australia in June rose at the fastest pace so far this year, supported by strong increase in finance extended for the purchase of new dwellings, the latest figures from the Australian Bureau of Statistics showed Wednesday.
Home loan commitments increased 1.3 percent month-on-month to 46,859 in June. This was the strongest gain since December last year. The rate of growth, however, was weaker than the 2 percent increase expected.
Loans approved for construction of new dwellings jumped 4.9 percent on a monthly basis after a meager 0.1 percent increase in May. Loans granted for purchase of new dwellings climbed 9.7 percent and that for purchase of established dwellings rose 0.3 percent.
The value of home loans for owner-occupied homes rose 1.2 percent to A$13.8 billion. The value of loans for investment homes was up 4.9 percent to A$6.9 billion. The total value of dwelling finance commitments rose 2.4 percent.
"The June rise was a more convincing gain after a choppy nine months although special factors, the expiry of buyer incentives in several states in particular, likely saw some pull-forward effects in the month," Westpac said in a note.
The Reserve Bank of Australia decided to retain its benchmark cash rate unchanged at 3.5 percent for a second consecutive rate-setting meeting on Tuesday. The bank has cut cash rate by a cumulative 125 basis points since November last year.
RBA Governor Glenn Stevens said Tuesday that though it is too early to see the full impact of past policy easing, dwelling prices have firmed a little over the past couple of months.
by RTT Staff Writer
For comments and feedback: email@example.com