Aussie home loan approvals seen to be steady

The Australian Bureau of Statistics has noted that the number of home loans granted in Australia in June remained steady.

Based on data released by the bureau, mortgage applications to build or purchase properties remained flat from May, when it climbed 2.8 percent, according to a Bloomberg report.

David Cannington, Economist at Australia & New Zealand Banking Group (ANZ), commented that the new data is quite promising for real estate finance.

“A downward bias to mortgage rates should provide a moderate boost to current weakness in housing market sentiment,” added Cannington.

In the opening week, rates for home loans from the country’s two largest lenders were trimmed.

Westpac and The Commonwealth Bank of Australia both reduced their rates in what was seen as a precursor to the central rate reductions from the Reserve Bank of Australia.

Dr Shane Oliver, Chief Economist and Head of Investment Strategy at AMP Capital Investors (AMP), predicted that home prices could take a dive if the Australian economy is affected by the global economic turmoil.

To contact the journalist, you may send your message to editor@propertyguru.com.sg