Housing Finance Falls in December
HOME loan approvals retreated for a third straight month in December after a reduction in government subsidies and interest rate rises dampened enthusiasm for mortages, economists say.
Australian housing finance commitments for owner-occupied housing fell 5.5 per cent in December, seasonally adjusted, to 55,632 the Australian Bureau of Statistics (ABS) said.
That was weaker than economists’ expectation for a fall of five per cent in the month.
Total housing finance by value fell by 2.8 per cent in December, seasonally adjusted, to $21.900 billion.
NAB senior economist David de Garis said the pullback in approvals for housing loans was expected after Federal Government stimulus measures were wound back and increases to interest rates during the final quarter of 2009.
The Federal Government reduced the first home buyers grant boost from $21,00 to $14,000 on October 1 and lowered it to $7,000 on January 1 this year.
Tags: Australian Bureau Of Statistics, Bureau Of Statistics, Commitments, Economist, Economists, Expectation, Federal Government, Finance Loan, First Home Buyers, Government Subsidies, Home Loan Approvals, Housing Loans, Interest Rate, interest rates, January 1, Measures, nab, Pullback, Stimulus
Posted in Money
No Comments