Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Learn
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Investors drive home loan approval growth

Simone Ziaziaris  |  09 Aug 2017Text size  Decrease  Increase  |  

Page 1 of 1

SYDNEY - [AAP] Home loan approvals edged 0.5 per cent higher in June, falling short of market expectations of a 1.5 per cent gain.

The value of total housing finance rose 0.8 per cent to $33.3 billion in June, seasonally adjusted, the Australian Bureau of Statistics said on Wednesday.

The rise was driven by a 1.6 per cent boost in the value of loans for investment housing, while owner-occupied housing loan approvals increased by 0.3 per cent.

Approvals for investment lending were stronger than analysts had expected, and took growth in the value of investment lending approvals to 5.7 per cent for the year to June, Westpac senior economist Matthew Hassan said.

"The numbers will be disappointing for regulators looking for a more material slowing in investor activity, although the full impact of macroprudential measures has yet to come through," he said.

The number of first home buyer commitments, as a percentage of the total home loan approvals, rose to 15 per cent in June, from 14 per cent in May.

The Australian dollar continued to lose ground on the news, after falling in earlier trade amid comments from US President Donald Trump that threats from North Korea would be met with "fire and fury".

The local currency was trading at 78.67 US cents at 1220 AEST, down from 78.75 US cents just prior to the data's release at 1130 AEST.

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.