Home loan approval rates at highest level this year
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THE property market is showing some signs of moving up the gears as the key spring selling period gathers pace with home loan approvals registering their biggest rise in almost a year.
Official data shows the number of home loans for owner occupiers approved in August rose 1.8 per cent to 45,821 - its highest level this year.
The surge in borrowing demand after the recent run of interest rate cuts exceeded economists’ forecasts.
Since the start of the year, the Reserve Bank has lowered interest rates by 1 per cent to 3.25 per cent but the banks have withheld passing through the full benefits to borrowers.
The official cash rate is tipped by some economists to drop to a record low of 2.5 per cent by March.
The Australian Bureau of Statistics report shows the value of total housing finance rose 0.6 per cent in August seasonally adjusted, to $20.301 billion.
