Unemployment decreases during May: Why this matters to you

By the resi financial blog team, 20 August 2013

Unemployment decreases May 2013

Whenever you are looking at making a long-term financial decision, it's worth taking a close look at the economy and any factors that might impact the outcome of that decision in the future.

And because purchasing or selling property is one of the biggest financial decisions that a person can make, it's always a good idea to make full use of the resources available to you before taking such a step.

There are a number of industry bodies and organisations that regularly publish information regarding the state of the Australian economy, which you can view for free online, and these can be invaluable to the prospective property buyer.

For example, the Australian Bureau of Statistics has recently published new data revealing that the seasonally adjusted unemployment rate in Australia dropped to 5.5 per cent in May.

Unemployment rates have a notable impact on demand for property, which can in turn drive the price of real estate up or down. This can also affect variable and fixed interest rates in Australia, so anyone looking at taking out their first home loan may want to take note.

According to the ABS, 11,663,300 Australians were employed during the month of May, an increase of 1,100 over April, while the number of people unemployed dropped by 3,600 to 682,900.

With more people in work, it makes sense that more people are now taking out home loans. In fact, ABS data released on June 11 has shown that the number of commitments for owner occupied housing finance in Australia rose by 1.4 per cent during April.

While many of those commitments were from those who had previously purchased property, the number of first home buyer commitments also increased slightly, from 14.2 per cent in March to 14.3 per cent in April.

For more information about how you can interpret statistics like this to secure a better fixed interest rate, consider talking to a resi mortgage manager today.

Categories: Home Loans