Interest rate cuts boost new home lending in australia

Housing finance figures for December 2011 reveal that the November and December official interest rate cuts had a positive impact on home buyer confidence and new home lending in Australia, according to the Housing Industry Association, the voice of Australia’s residential building industry.

‘The 2.1% increase in new home lending in the month of December 2011 suggests the potential of a modest revival in the lending market. Let’s hope, however, that the recent decision by two of our big banks to independently lift their variable lending rates does not undo the work of the Reserve Bank,’ said HIA senior economist, Andrew Harvey.

‘The improvement in lending for established homes also continued, with the number of loans up by 2.3% in December, again highlighting the impact that the changed interest rate cycle had begun to have on homebuyer confidence,’ explained Harvey.

Source: PropertyWire.com