The value of new loan commitments for housing increased for both owner-occupiers and investors in August, following declines the prior month, fresh ABS data showed.
The seasonally adjusted value of new loan commitments for owner-occupier housing rose 2.6% in August to $16.1 billion, after a fall of 1.6% in July, but was 12.5% lower compared to a year ago, with rises recorded in all states and territories, with the exception of the Australian Capital Territory.
The increases in new loan commitments for owner-occupier housing were led by the Northern Territory with a gain of 30.4%, followed by Tasmania (+17.9%), South Australia (+12.9%), Western Australia (+4.9%), Victoria (4%), Queensland (2.9%), and New South Wales (+2.1). ACT’s fell 3.3%.
Housing loans to investors also lifted in August after a 0.3% slip in July, up 1.6% in seasonally adjusted terms to $8.8bn but 3% lower compared to a year ago.
Across the states, those that saw an increase in the value of new loan commitments for investor housing were WA (+14.1%), NSW (+1.3%), SA (+5.2%), and Victoria (+0.2%). In contrast, declines were recorded in Queensland (-4.2%), ACT (-8.1%), NT (-14.7%), and Tasmania (-3.5%).
The value of external refinancing fell in August for both owner-occupiers and investors. The seasonally adjusted value of external refinancing for owner-occupier housing fell 3.3% to $14bn but was 12.4% higher compared to a year ago. For investor housing, the value dropped 5% to $6.6bn but was up 12.3% from a year ago.
ABS data also showed the number of new owner-occupier loan commitments for dwellings rose 2.5% in August but remained 12.3% lower compared to last year.
“Since February 2023, the number of new owner-occupier loans appears to have returned to levels seen before the COVID-19 pandemic began, well below the peak in January 2021,” said Mish Tan, ABS head of finance statistics.
The number of refinanced owner-occupier loan commitments between lenders declined by 5.4% to 26,539, after reaching a record-high last month.
“Since November 2022, the number of refinanced loans has been above the number of new owner-occupier loan commitments,” Tan said. “Refinancing has remained at unprecedented levels as households continued to seek better loans amid a high interest rate environment.”
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