AU: Home Loans


Wed Nov 08 18:30:00 CST 2017

Consensus Actual Previous Revised
M/M percent change 3.0% -2.3% 1.0% 1.5%
Yr/Yr percent change 2.6% 7.5% 7.6%

Highlights
The number of dwelling commitments for owner occupied housing in Australia fell 2.3 percent on the month in September (seasonally adjusted) after an increase of 1.5 percent in August. This is the first monthly fall in commitments since April.

The decline in headline commitments in September was driven by home loans for the purchase of established dwellings and for the construction of dwellings, which both fell by 2.6 percent on the month. This was partly offset by an increase of 1.8 percent in the number of home loans for the purchase of new dwellings.

The seasonally adjusted number of dwelling commitments rose 2.6 percent on the year in September, slowing from an increase of 7.6 percent in August. In original terms, commitments fell by 1.0 percent on the year after an increase of 7.6 percent in August.

The total value of dwelling commitments (excluding alterations and additions) fell 3.6 percent on the month in September, with the value of owner occupied housing commitments down 2.1 percent and the value of investment housing commitments dropping 6.2 percent.

Today's data - in particular, the drop in the number of loans for the construction of new dwellings and the fall in the value of investment housing commitments - suggest that recent supervisory measures may be having an impact. Reflecting concerns about high levels of household debt, authorities have tightened credit standards in an attempt to lower the risk profile of borrowers.

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.