Home loan approvals bounce back in May - Latest News In Nigeria!

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Tuesday, July 11, 2017

Home loan approvals bounce back in May

The number of home loan approvals has bounced back after declining for three months in a row.
Approval numbers were up 1.0 per cent in May, but the gain fell short of market expectation of a 1.5 per cent rise.
The value of total housing finance rose by a seasonally adjusted 1.3 per cent to $33.03 billion in the month, data from the Australian Bureau of Statistics show.
Owner-occupied housing loan approvals led the gains, with their value up 2.9 per cent in May.
But investment housing continued to be impacted by tighter regulations, with the loans value declining 1.4 per cent.
The Australian Prudential Regulation Authority (APRA) capped interest-only mortgage lending in the last week of March, telling lenders to limit higher-risk interest-only loans to 30 per cent of new residential mortgages.
That set off a fresh round of rate increases by the major lenders, with banks repricing their loan books to make interest-only and investor loans more expensive, in order to comply with the new limits.
The Australian dollar has turned slightly higher on the news.

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