The number of borrowers refinancing their home loans reached a new high in May, according to new data released by the Australian Bureau of Statistics (ABS).
The latest figures show that the value of new loans for housing rose 4.8% to $24.9 billion in May 2023, after a fall of 1.0% in the previous month.
The total value of new owner-occupier loans rose 4.0% to $16.4 billion in May, while the value of new investor lending rose 6.2% to $8.5 billion.
Excluding land and alterations, additions, and repairs, the value of new owner-occupier lending rose 4.2% to $15.3 billion. The number of these commitments rose 5.1% to 26,253.
Compared with pre-COVID 19 pandemic levels in February 2020, lending to this sector was 17% higher in May 2023, while the number of loans was down 0.2%. The average value of these loans has risen by 21.8% (in original terms) over the period.
First home buyers are back in the market, with the number of new owner-occupier first home buyer loans rising 2.7% after a fall of 0.3% in April. Nevertheless, this was 17.4% lower compared to a year ago.
Refinancing reached a new high in May, with the value of owner-occupier refinances between lenders up by 8.6% to $14.1 billion.
