Demand for home loans down in August

Wednesday 07 October 2009

Article by Mozo

The number of people applying for home loans fell in August, according to new figures.

Statistics published by the Australian Bureau of Statistics revealed that for the second consecutive month there was a decline in people purchasing mortgages, including low interest home loans.

Throughout the month, some 62,718 mortgages were approved, which represented a 0.6 per cent seasonally-adjusted dip.

Furthermore, first-time buyers made up 24.7 per cent of market activity, which also reflected a drop in interest from this demographic.

Nomura economist Stephen Roberts commented on the development.

He told Reuters for the AAP that the roll-back of government stimulus will trigger more drops.

"We can expect further declines in owner-occupier housing finance due to reductions in first-time home buyer grants at the end of September and again at the end of December," he commented.

The Reserve Bank of Australia recently warned that people on a low income could be less likely to afford the steadily increasing house prices.

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