While much of the world is coming to terms with falling housing prices brought on by crippling debt and the inability to service it, Australia’s size of new mortgages has hit a new record.
Fueled by emergency low interest rates, the average home loan brokered in November was $367,000 up 6.4 percent since May.
Victoria led the way with a 12.1 percent increase since May. NSW wasn’t far behind at 10.7%.
These figures give more ammunition to the RBA to hike rates to a more normal footing. Yesterday, the RBA put rates up 25 basis points to 3.75%, the first time rates have risen in three consecutive months.
» Size of new mortgages sets a record – Yahoo!7 Finance, 2nd December 2009.