Home loans commitments in largest fall in History8 July 2020
The value of new loan commitments for housing fell sharply in May, down 11.6 per cent, seasonally adjusted, according to the latest Australian Bureau of Statistics figures released today.
ABS Chief Economist, Bruce Hockman, said: “This was the largest fall in the history of the series, driven by strong falls in the value of loan commitments for housing in New South Wales and Victoria”
The value of new loan commitments for owner occupier housing fell -10.2%, while investor housing fell -15.6%. The number of owner occupier first home buyer loan commitments fell -9.3%.
“While reduced transactions in the housing market stifled new loan activity in May, the value of existing owner occupier loans refinanced with a different bank was by far the highest on record as borrowers responded to reduced interest rates and refinancing offers”, Mr Hockman said.
The value of new loan commitments for fixed term personal finance rose +14.5% in May, seasonally adjusted, following a -24.8% fall in April.
“The rise in the value of new loan commitments for fixed term personal finance was driven by a partial rebound in the value of new loan commitments for road vehicles”, Mr Hockman said.