New housing loan commitments rose 4.8% in May5 July 2023
The value of new loan commitments for housing rose 4.8 per cent to $24.9 billion in May 2023, after a fall of 1.0 per cent in the previous month, according to data released today by the Australian Bureau of Statistics (ABS).
Mish Tan, ABS head of finance statistics, said: “The value of new owner-occupier loan commitments rose 4.0 per cent to $16.4 billion in May, while the value of new investor loan commitments rose 6.2 per cent to $8.5 billion.”
The value of new owner-occupier dwelling loan commitments (excluding land and alterations, additions and repairs) rose 4.2 per cent to $15.3 billion. Meanwhile, the number of these commitments rose 5.1 per cent to 26,253.
Compared to pre-COVID 19 pandemic levels in February 2020, the value of new owner-occupier dwelling loan commitments was 17.0 per cent higher in May 2023, while the number of commitments was 0.2 per cent lower. The average value of these loans has risen by 21.8 per cent (in original terms) over this period.
The number of new owner-occupier first home buyer loan commitments rose 2.7 per cent, after a fall of 0.3 per cent in April. This was 17.4 per cent lower compared to a year ago.
The value of new owner-occupier housing loan refinances between lenders rose 8.6 per cent and reached a new high of $14.1 billion. Borrowers continued to switch lenders amid an environment of increasing interest rates.