Australia’s home loan market is finally starting to show signs of life, despite an eight per cent fall in annual housing finance commitments.
New data from Loan Market group found home loan commitments for August 2011 were up a healthy 17 per cent from the previous August.
Loan Market chief operating officer Dean Rushton said factors such as four interest rate rises by the Reserve Bank of Australia last year and natural disasters contributed to the sluggish performance in the early months of 2011 and were the contributing factor to the eight per cent annual drop.
But Mr Rushton said a 20 per cent jump in their home loan enquiries in August were additional signs of a recovery in the market.
“The RBA’s decision to keep the cash rate on hold at 4.75 per cent for the past 10 months should continue to restore consumer confidence and activity,” Mr Rushton said.
“The likelihood of the RBA staying on the sidelines for at least the rest of this year should lead to further improvements in the home finance sector.”