Following upbeat releases of December month housing market data from Australia, analysts at the Australia and New Zealand Banking Group (ANZ) praised the home loans. The report cited gains in housing finance for owner-occupiers to mark the strength of the Aussie housing sector.
Key quotes
Owner-occupier lending grew 5.1% m/m in December ex-refinancing, the strongest result since August 2015.
Annual growth in owner-occupier lending jumped to 17.9% y/y, from 5.6% y/y in November.
Volumes of first-home buyer loans bounced 6.2% m/m, the second strongest result since August 2017.
Improved sentiment in the property market, driven by easier credit, low interest rates and consistently strong price growth, is behind the continuing strength of mortgage demand.
While housing credit growth is still low, strong demand for finance looks to be of concern for the RBA, with the Bank now weighing up more carefully the costs and benefits of further rate cuts.
Source: Fxstreet
