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Refis Continue To Exceed New Owner-Occupier Loans

AUSTRALIA DATA

The value of home loans rose a higher-than-expected 2.2% m/m in August up from -1.1% but it is still down 9.4% y/y. There was strength in both the owner occupier and investor components with them rising 2.6% m/m and 1.6% respectively.

  • In terms of trends, lending to investors has driven the total with 3-month annualised momentum at 27.2%. Also, the annual rate is now down only 3% compared to last year after -7.2% in July. Whereas lending to owner occupiers is still down 12.5% y/y and 3-month momentum turned negative in August.
  • The ABS is reporting that the number of owner-occupier refis fell 5.4% m/m in August to 26,539 after reaching a record high in July. It also observed that refis had been above new loans since November last year as borrowers looked for better deals given higher rates.
  • Data on housing finance to new home buyers has been suspended due to “data reporting issues”.
Australia number of owner-occupier housing loans ('000s)

Source: MNI - Market News/ABS

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