 Industry happy with rising home loan applications
First home buyers and investors helped spur on the ninth consecutive rise in loan approvals for new home.
First home buyers made up 27.1 per cent of all buyers in June, a little lower than the 28.5 per cent recorded in May. The Australian Bureau of Statistics released the data on Monday.
The rush of first homebuyers is slowing slightly, as the boost to the first home owner's grant winds down. However with interest rates still low, both investors and first buyers are still very much in the market.
Overall demand for mortgages rose by a seasonally adjusted 1.1 per cent in June for owner-occupiers over the previous month to 65,151 loans, Australian Bureau of Statistics data showed.
However, economists expect the stimulatory boost from low rates and a large grant will fade in the second half of the year.
The grant for first homebuyers was increased by the federal government for a period of time, but will be reduced gradually from October 1. Currently $14,000 is on offer for established homes and $21,000 for newly constructed homes.
The grant will return to its original $7,000 for all first home buyers from January 1, 2010.
Financial markets now predict an increase to the official interest rate will not happen until at least November.
|