Improvements for housing finance in May

By the resi financial blog team, 28 August 2013

Improved housing conditions from May 2013

If you’re considering taking out a fixed or variable rate loan in the upcoming months then you’re likely to be in good company, as the Australian Bureau of Statistics (ABS) has reported an increase in the number of housing finance commitments.

According to ABS data released this week (June 11), the number of owner-occupier housing finance commitments rose by 1.4 per cent in April. This is a continued improvement for finance commitments and comes on top of a total increase of 1.4 per cent over the quarter.

This is an encouraging sign for the real estate sector, as it may signal an improvement in overall consumer confidence in the property market.

First home buyers were the only category to report less than desirable results and experienced a small improvement in numbers.

"The proportion of first home buyers in the number of owner-occupied housing finance commitments was 14.3 per cent in April compared to the March figure of 14.2 per cent," said Real Estate Institute of Australia president Peter Bushby.

"The proportion remains persistently low compared to the long-run average proportion of 20.1 per cent," said Mr Bushby. 

However, the investment housing market has continued to improve for an eleventh consecutive month and reported a rise of 1.2 per cent.

Changes over the last year and a half to the official cash rate may have helped to allow many more investors to refinance investment property loans, and take on new home loan packages to buy additional properties.

Effects from the cash rate changes are still to be seen in the months to come, after the Reserve Bank of Australia decided to leave the rate unchanged at 2.75 per cent earlier this month.

To secure the best fixed interest rates in Australia, speak to one of the loan specialists at resi today for professional advice and assistance.

Categories: Home Loans