AU: Home Loans


Thu Jun 08 20:30:00 CDT 2017

Consensus Actual Previous Revised
M/M percent change -1.0% -1.9% -0.5% -0.9%
Yr/Yr percent change -6.4% -1.9% -2.4%

Highlights
The number of dwelling commitments for owner occupied housing in Australia fell 1.9 percent on the month in April (seasonally adjusted) after a 0.9 percent decline in March. This was weaker than the consensus forecast for a decline of 1.0 percent.

The drop in the headline number was mainly driven by a 2.3 percent decline in purchases of established dwellings, with purchases of new dwellings also falling 3.0 percent on the month. This was only partly offset by a 2.1 percent increase in home loans for the construction of dwellings.

In year-on-year terms, the number of dwelling commitments fell 6.4 percent in April (seasonally adjusted), after a drop of 2.4 percent in March.

The total value of dwelling commitments (excluding alterations and additions) fell 1.6 percent on the month in April, with the value of investment housing commitments with fixed loans dropping 2.3 percent and the value of owner occupied housing commitments down 1.1 percent.

The number of housing commitments has now fallen in each of the last three months, broadly coinciding with the introduction of supervisory measures aimed at curbing growth in housing debt. The fall in the value of housing investment loans in April also likely reflects recent increases in mortgage rates for investment properties.

Definition
Home Loans data are included in the monthly housing finance report. The report also contains data for home loans for secured and unsecured housing finance commitments for owner occupation, commitments for construction or purchase of dwellings for rent or resale and loans outstanding to individuals/households for housing.

Description
The health of the housing market is always a key element in evaluating the strength of the economy. And it is no different for Australia. The data released here are for secured and unsecured housing finance commitments for owner occupation, commitments for construction or purchase of dwellings for rent or resale, and loan outstanding to individuals/households for housing.

For secured housing finance for owner occupation, these data give the number and value of commitments made by banks, permanent building societies, wholesale lenders not elsewhere classified and other lenders, provided to individuals/households. These commitments are classified by construction of dwellings, the purchase of new and established dwellings, the refinancing of existing dwellings and alterations and additions to dwellings.