Home loan uptake grew in November, new figures show

Monday 09 January 2012

Article by Mozo

The number of Aussies taking out home loans increased in November 2011, new figures released by the Housing Industry Association (HIA) have suggested.

According to the organisation, the number of property sales grew by 6.8 per cent during the month, as plenty of people took advantage of interest rate cuts sanctioned by the Reserve Bank of Australia (RBA).

This followed on from a 2.8 per cent decline in October and the HIA's chief economist Harley Dale believes the latest statistics are encouraging, but there is still a long way to go before the industry is back in full swing.

"At present, sales volumes are running at least 20 per cent below what you could conservatively call healthy," he remarked.

The RBA made two readjustments to interest rates at the end of last year, slashing them by 0.25 per cent in November and December.

Some economists have since predicted that further cuts will be made to interest rates in the near future, with chief economist at HSBC Paul Bloxham hinting that changes could be made as early as February.

Home loan uptake grew in November, new figures show

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