Today’s ABS figures show a shock plunge in the number of loans taken out by owner-occupiers in November. Loans to owner-occupiers fell 5.6%. While the average economist only forecasted a drop of 2.3%, it should have been expected the winding back of the First Home Buyers Boost would have had some effect.
Loans for the construction of new dwellings fell 6.5%, while loans for the purchase of newly-built dwellings fell 5.1%
Meanwhile, data from the Australian Finance Group paints an even bleaker picture for December. According to AFG, there was a 21.2% fall in the number of applications for new mortgages in December, the last month of the scaled down First Home Owners Boost.
» Shock plunge in home loan approvals – Yahoo 7, 12th January 2010.
» Housing sector hit by rate rises, end of grant – The Australian, 6th January 2010.