MNI BRIEF: Aussie New Home Loans Dip For Fourth Straight Month
The Reserve Bank of Australia's aggressive tightening cycle continues to reverberate through home lending, with new home loans dropping for a fourth consecutive month in September, according to Australian Bureau of Statistics lending indicators released on Wednesday.
Total home loans fell 8.2% m/m to AUD25.1 billion, the lowest level since November 2020 and well down from peak monthly loans of AUD32.77 billion in December 2021. The value of new owner-occupier loans fell 9.3%, while new investor loans dropped 6%.
The RBA raised interest rates 25bp to 2.85% on Nov 1 as it raised its forecast for peak inflation to "around" 8% by the end of the year. (See MNI RBA WATCH: Hikes 25bp, To Miss Inflation Target Until 2025). The Bank is expected to hike again by 25bp at its December meeting. (MNI RBA REVIEW - November 2022; Balancing Inflation & Growth)