Home loan commitments fell sharply in June

The number of home loan commitments fell considerably in June, suggesting the housing recovery is coming to an end.

Australian Bureau of Statistics (ABS) data has revealed that housing finance commitments for owner-occupied housing fell 3.9 per cent in June – a drop of almost twice the two per cent market forecast.

In addition, the figures showed that total housing finance by value fell by 1.9 per cent in June to $20.710 billion.

CommSec economist Craig James told the AAP that he believed the home loan interest rate hikes which were enforced late last year and early this year “are continuing to bite”.

“In the last couple of months, investors had served to prop up the overall market, but that wasn’t the case this time around,” he said.

“It must be starting to come as a concern for the authorities.”

The difficult financing climate has increased the need for Aussies to compare home loans in search of the best deals. According to the recent House Price Index from the ABS, house prices in Australia’s major capital cities have risen by 18.4 per cent over the last year.

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