 Home loan approvals rise
It may have been the seventh monthly rise in a row and the highest number if home loan approvals since February 2008, but the April rise still disappointed those economists who forecasted a rise of 1.5 per cent.
The data from the Australian Bureau of Statistics (ABS) showed that first home owners held the market.
Stephen Walters is chief economist at JP Morgan and says the market was supported by first home buyers.
"It is pretty clear that first home buyers are still in there,'' Mr Walters said.
"A combination of the government giving you money and the Reserve Bank cutting interest rates to generational lows plus a bit of weakness in house prices has drawn people in.''
ABS data shows demand for loans to buy existing homes was up 0.9 per cent in April. Loans for new homes fell 0.5 per cent but building contracts were up 1.4 per cent.
First home owners made up 28 per cent of the total loans in April, the highest number since records began in 1991.
Since the boost to the first home owners grant was announced there has been an increase in interest from first home buyers. The boost, which continues in full until September then halves until it's December ending, offers first home buyers as much as $21,00 to build a new home.
Over the past few months the cash rate has been lowered by the Reserve Bank a whopping 425 basis points. Since the stat of September the RBA has been moving to help Australia remain a strong economy.
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