ABS figures show increase in home loans in August

The latest data from the Australian Bureau of Statistics indicated that there has been an increase in the number and value of home loans approved in August.

Month-on-month, the number of mortgages approved rose by 1.2 per cent, while the value increased by 1.2 per cent.

Compared with the same month in 2010, there was an increase in the value of lending to those purchasing property of 6.4 per cent.

There was a significant increase in refinancing as well, with the value of these transactions increasing by $1 billion year-on-year.

However, if refinancing is taken out of the equation, the value of loans to home buyers in August dropped by 1.5 per cent compared with the year before.

Last month, mortgage broker AFG revealed that sales of home loans hit the $2.7 billion mark during August, marking the highest level seen for 18 months, reported the Australian.

The report also revealed that there has been an increase in interest in fixed-rate products among consumers.

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