With an increasing number of first-time buyers entering the market, mortgage approvals in Australia surpassed the forecast of economists in September, its sixth consecutive monthly gain.
According to the statistics bureau, the number of loans granted to build or acquire apartments and houses increased 2.2 percent from August, when they climbed 1.2 percent.
In addition, the growth in home loans may even speed up in the coming months after Glenn Stevens, Governor for the Reserve Bank, reduced interest rates for the first time last week. A government report also revealed that house prices fell last quarter.
In a research report, David Cannington, an economist at Australia & New Zealand Banking Group Ltd, noted that the data indicated “the increasing likelihood of rate cuts and positive trend monthly growth in housing finance since April.”
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