March 10, 2017
Home loan demand continues to be strong, with new data showing that the number of dwelling commitments approved rose 0.5% throughout the month of January.
According to the latest housing finance data from the Australian Bureau of Statistics, 55,153 home loans were written throughout the month of January – up from 54,876 loans written the month prior.
“January was the sixth consecutive month of growth for home loan approvals,” Mortgage Choice chief executive officer John Flavell said.
“The latest data suggests that current low interest rates are continuing to fuel buyer demand for property.”
In addition to a rise in home loan demand, there was an increase in the value of home loans written.
“In total, nearly $34 billion of home loans were approved throughout January – up 1.5% on the month before,” Mr Flavell said.
“This can be largely attributed to the increase in value of investment loans approved.
“During the month of January, more than $13.7 billion in investment loans were approved – up 4.2% from December.
“On the other hand, the value of owner-occupied housing loans fell 0.2% to $20.1 billion.”
Looking ahead, Mr Flavell said he expected home loan demand to continue to rise over the next couple of months.
“We are now in autumn, and traditionally people will want to buy a home and settle before the winter period,” he said.
“On top of that, interest rates remain at historically low levels, which is helping to keep heat in the property market.
Whilst ever interest rates remain low and the cost of borrowing continues to hover around these incredibly affordable levels, people will continue to buy and invest in property.”