The number of housing loans issued by Australian banks is falling due to the reduction of the government’s stimulus measures and increasing interest rates.
Data from the Australian Bureau of Statistics showed that the number of home loans issued in November last year fell to 5.6 percent. Overall, the housing finances for owner occupation dropped 2.9 percent from $17.036 billion in October to $16.537 billion in November.
CommSec Economist Savanth Sebastian said that such a decline was unavoidable in light of difficult borrowing conditions at the present time.
"It’s ironic that, over the past year, what supported lending finances was housing, which has now contracted, largely due to the fact that we’ve had rate hikes and the expiry of the first home owners boost," Mr. Sebastian added.
He also said that the Reserve Bank is more likely to increase interest rates for four consecutive months beginning in February, a prediction that may promote borrowers to compare housing loans.