Home loans have stabilised, report shows

Wednesday 10 November 2010

Article by Mozo

The home loan market has stabilised due to improved home lending in September, according to a new report.

Home loans have stabilised, new figures show

Figures from the Australian Bureau of Statistics showed that housing finance commitments for owner-occupied housing increased by 1.3 per cent in September – an rise on the median market forecast of 1.2 per cent.

The figure also showed that total housing finance value increased by one per cent to $20.386 billion.

However, customers could be tempted to compare home loans after one expert suggested that rising interest rates could put a stop to further increases.

JP Morgan economist Ben Jarman told the news provider: "We think home loans have basically stabilised and the upside from here is probably capped by those rising interest rates. We think those rate hike reprieves would have been particularly important for households.

"The big test going forward is going to be rising interest rates, so the Reserve Bank of Australia hiking last week will obviously take some of the wind out of the sails here."

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