By Cheryl Tay:
On a seasonally adjusted basis, the total demand for home loans in Australia grew by 0.9 percent in September, according to the Australian Bureau of Statistics.
However, this was offset by a 6.3 percent drop in the amount of mortgages granted for construction in the same month. Furthermore, Master Builders Australia called the latest loan figures “disappointing”.
Wilhelm Harnisch, Chief Executive Officer of Master Builders Australia, said the dismal results highlighted the urgent need for more interest rate cuts.
Moreover, he said the Reserve Bank of Australia’s (RBA) projection that an improving property construction sector will pick up the slack for an expected decline in the resources industry next year may not materialise.
“The September housing finance figures show that the housing sector will be struggling for some time to come.”
Nonetheless, the growing number of first home buyers is a “bright spot” and this trend is expected to catch on as various state government incentives begin to take effect, added Harnisch.
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