Australian housing loans tick up in June
Month-on-month rises in owner-occupied housing and investment loans.
Both the value of housing investment and owner-occupied loans among Australian financial institutions rose modestly month-on-month in June, according to the latest banking stats.
The Australian Prudential Regulatory Authority (APRA) revealed loans for owner-occupied housing increased 0.9% month-on-month in June, compared to May 2016. The overall value rose from $937,841 million in May to $946,452 million in June 2016.
These are loans for the construction or purchase of dwellings for owner occupation and include revolving credit or redraw facilities originally approved for the purpose of predominantly owner-occupied housing.
Loans for housing investment also rose in June, up 0.29% month-on-month, from $523,805 million in May to $525,320 million in June 2016.
These are loans to Australian households for the construction or purchase of dwellings that aren't intended to be occupied by the owner and also include approved revolving credit or redraw facilities.
Commonwealth Bank of Australia (CBA) continued to hold the largest value of loans in Australia. Housing investment loans were up 1.15% from $129,801 million in May to $131,298 million in June 2016.
The stats were revealed ahead of the Reserve Bank's (RBA) cash rate decision this week. 56% of our resident rate experts have forecast the rate to fall to 1.50% on Tuesday.
In his statement on Australia's monetary policy decision last month. RBA governor Glenn Stevens said financial institutions were in a position to lend, citing moderate credit growth.
"Indications are that the effects of supervisory measures have strengthened lending standards in the housing market," he said.
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