Home loans figures fall in February

Wednesday 13 April 2011

Article by Mozo

The amount of money lent to people who secure home loans fell by 4.6 per cent in February this year, recent figures indicate.

Home loan figures 'declined in February'

However, the data from CommSec revealed that despite the drop in lending commitments, the rate of decline had slowed, because in January there was a 5.3 per cent slide.

With the number of people securing house finance declining, those who want to secure a mortgage to purchase their own property might benefit from heading online to find the best deal.

According to the study, the decline can partly be attributed the decision by the Reserve Bank of Australia to push interest rates up to 4.75 per cent in November – a rise of 25 basis points.

It asserted that there is always a certain amount of "lag" between hikes and the effects of them registering.

Savanth Sebastian, an economist with CommSec, commented: "CommSec expects the Reserve Bank to stay on the interest rate sidelines for at least the next three months – especially given that inflation looks to be well contained at present."

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