Home Loans Begin To Fall
Home Loans Begin To Fall – The number of home loans fell again in March, marking the sixth consecutive monthly decline, amid rising interest rates and a chronic shortage of housing. The tally of those borrowing to occupy the home rather than rent shrank to its smallest level in nine years.
The number of home loans dropped 3.4 per cent in March, following a 1.8 per cent fall in February, according to Australian Bureau of Statistics figures. It’s the eighth fall in the past nine months. Analysts had tipped a 3 per cent fall in March, according to Bloomberg.
The total value for all loans eased 1.4 per cent in the month to $20.1 billion, seasonally adjusted, while the value of owner-occupied homes dropped 3.4 per cent to $13.5 billion, the ABS said.
A sustained supply of newly built homes – and the loans needed to fund them – is needed to address the nation’s estimated 200,000 unit shortage of affordable housing, housing groups say. The latest monthly figures suggest housing finance is not going to provide the spur for that supply.
The total number of owner-occupied home loans fell to 48,260 in March from 49,983 in February – the lowest level since April 2001, according to Matthew Circosta, an economist with Moody’s Analytics.
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