Aussie Home Loans Show Unexpected Gain
The performance of home loans in March outpaced its expectations. Australians seem to be taking advantage of the first home owners grant as well as lower interest rates to enter the housing market.
According to the Australian Bureau of Statistics, the number of home loans (seasonally adjusted) rose 4.9 percent in March from 0.4% in February.
Economist were only expecting an increase of 4.5% for the month. “It’s a pretty strong result,” says Matt Robinson Economy.com, said.”It really is a reflection of the dramatic monetary policy easing and the Government stimulus efforts.”
First-home owners jumped from 26.5 percent in February to 27.3% in March. This is described as “the highest proportion since the series commenced in 1991.”
First-home owners, as a share of owner-occupied borrowers, jumped to 27.3% in March from 26.5% in February, the ABS said,
The total value of loans rose to $20.7 billion. Meanwhile, loans for owner-occupied homes increased to 7.3%, while loans for investment properties gained 4.7%, seasonally adjusted.
