More loans on the market for average Aussies
The rate-cutting frenzy seen in the last few months has had the desired effect of putting more low-interest home loans on to the market.
Australian Bureau of Statistics records show that the total number of home loan approvals seen in November rose 1.3 per cent when compared to the previous month.
Commonwealth Bank of Australia property expert Michael Workman said that the figures were proof that the Reserve Bank’s strategy was working.
“It is indicating that the interest rate cuts and also the first-home buyers scheme have had quite a strong impact on lending,” he said.
Further figures released by the bureau have shown that the number of first-home buyers entering the market also increased dramatically over the course of the month, with the proportion of houses bought by new buyers reaching a seven year high.
Mr Workman concluded by calling for more rate cuts in February and March in order to bring more low-interest home loans on to the market.