Home loan growth stagnates in Feb

Thursday 09 April 2009

Article by Mozo

Despite the Reserve Bank of Australia’s (RBA’s) best effort, there was very little growth in the number of people applying for new home loans in February, the latest official figures show.

The Australian Bureau of Statistics has revealed that there was a 0.41 per cent rise in the number of new home loans given out month-on-month, a situation which has left some experts a little deflated.

However, ICAP senior economist Adam Carr told ABC that the consecutive interest rate cuts seen from the RBA are likely to continue to entice homebuyers over the coming months.

"A bit softer but it doesn’t change the trend, I think we can still look forward to strong home loan activity given that interest rates are at their lowest rate since the 1960s," he added.

The RBA has again made another interest rate cut this month, although some consumers may be a little disappointed at the size of the 25 basis point slice.

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