Mortgage demand in Australia dropped for the fifth consecutive month in February, as tighter lending conditions and increasing interest rates discouraged interested borrowers.
According to data released by the Australian Bureau of Statistics (ABS), only 50,287 mortgages were granted to owner-occupiers in the month of February, down by a seasonally-adjusted 1.8 percent in January.
ABS also found that the total value of dwelling finance commitments, excluding additions and alterations, dropped 2.1 percent in February.
Adam Carr, an economist from ICAP, said that with fewer Australians inclined to invest in the property market and compare their mortgage loans, the Reserve Bank might soon decide to slow its current policy of raising interest rates.
Referring to the data from ABS, Mr. Carr said: "It’s pointing to a sharp, broad-based decline in lending activity. That would suggest to me that we’re getting to the point where the pace of rate hikes will slow, markedly."
Meanwhile, the recent research showed that the country’s major banks continued to increase their mortgage rates above the official cash rate, suggesting that home loan costs could soon reach its peak seen during the economic boom.