MNI BRIEF: Aussie Home Loans Rise 3.1% In March
Australian home loan values rose faster than expected over March.
Australian home loan values rose 3.1% m/m in March, higher than the 1% market expectation, and 17.9% y/y to AUD27.6 billion, data from the Australian Bureau of Statistics showed Friday.
“The rise in the value of new home loans over the past year reflected increases in the average loan size, in line with rising house prices over the same period,” said Mish Tan, head of finance statistics, at the ABS. “Meanwhile, in original terms, the number of loans reaching the final commitment stage is broadly similar to a year ago.”
The value of investor loans rose 3.8% in March to AUD10.2 billion, increasing 31.1% y/y, while owner-occupier loans (excluding first home buyers) rose 2.1% AUD12.3 billion, increasing 8.8% through the year. First home buyer loans increased 4.4% to AUD5.2 billion, rising 17.9% y/y.
The strength of the housing market has confounded the Reserve Bank of Australia's models, while the high savings rate has kept arrears lower than other western countries. (See MNI POLICY: House Price Strength Thwarts RBA Models) The board next meets May 7.