Like home values, lending remains high despite data indicating ongoing falls.
New figures released this week by the Australian Bureau of Statistics (ABS) show that the value of all new loans for housing fell 2.7% in October 2022 (seasonally adjusted), while the value of owner-occupier refinancing between lenders fell 1.3%.
ABS Finance and Wealth Spokesperson Katherine Keenan said that despite the October fall, monthly owner-occupier refinancing between lenders has remained above $12 billion since June 2022, well above pre-pandemic values.
“Investor refinancing activity has also remained high”, she noted.
“The RBA cash rate increased 225 basis points between June and October 2022, which coincided with a greater number of borrowers seeking loans with lower interest rates from competing lenders.”
The value of new owner-occupier loans fell 2.9% in October, while the value of loans to new investors fell 2.2%. The fall continued the decline from record high levels seen earlier this year, although commitments remain above pre-pandemic levels.
The number of new loans to owner-occupier first home buyers fell 3.2% in October 2022, after a revised fall of 4.0% in September. First home buyer loans in October were 47% below the January 2021 peak and similar to 2019 levels.
