Mortgage lending up in surprise November result

The number of new home loans surprisingly went up in November 2010, the same month that the Reserve Bank chose to lift the official cash rate to 4.75 per cent.

According to new Australian Bureau of Statistics (ABS) data, the number of new home loans for owner-occupiers rose 2.5 per cent in November to a seasonally adjusted 50,526.

In addition, the ABS said that total housing finance by value rose nationwide by 1.2 per cent in November.

The news suggests that Aussie borrowers were still looking to compare home loans during the month, despite interest rate hikes at all of the big four banks.

Speaking to the AAP, Commonwealth Bank economist James McIntyre said the result was unexpected given the forecasts of a fall in housing finance commitments for the month.

"(That is) quite a good outcome given the headwinds that people saw for November," he said.

However, Mr McIntyre said the rise in new home loans was unlikely to encourage the RBA to raise the cash rate any time soon given the effects of the Queensland floods.

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