Home loan market improves in June due to easing restrictions
The easing of coronavirus restrictions has encouraged more people to take out home loans and boosted the housing finance sector by $17 billion.
Latest figures released by the Australian Bureau of Statistics show new home loans in June rose 6.2 per cent compared with May, with the housing finance sector adding $17.4 billion in value.
ABS chief economist Bruce Hockman said the figures reflected the easing of COVID-19 restrictions in May; however, housing finance activity remained lower than pre-pandemic levels.
“The rise in housing loan commitments in June reflects the easing of COVID-19 restrictions in May on auctions, open houses and mobility in general,” he said.
“Despite the rebound in lending activity, the value of housing loan commitments in June was down over 10 per cent compared to March after large falls in April and May.”
New owner-occupier loans rose 5.5 per cent, while investor loan commitments increased 8.1 per cent over the month.
Owner-occupier loans through first-home buyer loan schemes rose 3.3 per cent over the period.
“The easing of COVID-19 restrictions drove the rises in May and June but commitments for road vehicles and total fixed loan commitments for personal finance remain below the pre-COVID level,” Mr Hockman said.
Fixed-term personal finance increased 5.2 per cent month on month but remains 10.9 per cent lower compared with the corresponding period in 2019.
New loan commitments for road vehicles rose 20.4 per cent in June compared with May in seasonally adjusted terms.