AU: Home Loans


Thu Dec 07 18:30:00 CST 2017

Consensus Actual Previous Revised
M/M percent change -2.8% -0.6% -2.3% -2.5%
Yr/Yr percent change 2.4% 2.6% 2.5%

Highlights
The number of dwelling commitments for owner occupied housing in Australia fell 0.6 percent on the month in October (seasonally adjusted) after dropping 2.3 percent in September. This decline was smaller than the consensus forecast or a fall of 2.8 percent.

The fall in headline commitments in September was broad-based. Home loans for the purchase of established dwellings fell by 0.4 percent on the month, m while loans for the construction of dwellings and the purchase of new dwellings fell buy 1.4 percent and 1.6 percent respectively.

The seasonally adjusted number of dwelling commitments rose 2.4 percent on the year in October, down slightly from an increase of 2.6 percent in September. In original terms, commitments increased by 7.0 percent on the year after a fall of 1.0 percent in September.

The total value of dwelling commitments (excluding alterations and additions) advanced 0.6 percent on the month in October, with the value of owner occupied housing commitments unchanged and the value of investment housing commitments increasing by 1.6 percent.

With the number of housing commitments falling for a second consecutive month and the value of dwelling commitments increasing only modestly, today's data suggest that recent supervisory measures are continuing to have an impact on the housing market. 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.