Refinancing hit another new record high in February, despite a fall in overall lending for housing, according to data released this week by the Australian Bureau of Statistics (ABS).
The figures show that the value of new loans for housing fell 0.9% to $22.6 billion in February 2023 (seasonally adjusted), after a revised fall of 2.4% in January.
Lending to owner-occupiers fell 1.2% to $15.0 billion, while the value of new investor loans fell 0.5% to $7.6 billion.
Refinancing, on the other hand, is booming. The value of owner-occupier housing loan refinancing between lenders rose 3.5% to a new record high of $13.6 billion in February 2023, as borrowers continued to switch lenders for lower interest rates.
The number of first home buyers continues to take a hit, with lending to that sector down 3.5% in February 2023, after a revised fall of 4.6% in January.
First home buyer lending has been steadily dropping from the high reached in January 2021, to be at the lowest level seen since May 2017. It was also 27% lower than February 2020, prior to the COVID-19 pandemic.
