Reserve Bank of Australia board members have noted the ongoing strength in the housing market, but sense momentum is slowing.
RBA October board minutes included;
- Dwelling investment had increased by more than 8% over the year to the June quarter.
- House price growth had been a little slower, on average, over 2014 than in late 2013.
- Over the previous six months, overall housing credit growth had been steady at around 7% in annualised terms, but members noted that growth of investor credit had increased to close to 10%.
- Growth in dwelling investment had been strong.
- Mining and non-mining business investment in aggregate had fallen over the year.
- Unemployment rate in August had retraced the sharp rise recorded in July to be close to 6 per cent.
- Forward-looking indicators had picked up a little, but still pointed to only modest employment growth over the coming months.
Now is a perfect time for a Free Home Loan Health Check.
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