The Reserve Bank of Australia (RBA) reducing official interest rates has encouraged consumer confidence and generated growth in the home finance sector, says leading mortgage broker Priority Lending.
Priority Lending Chief Operating Officer Dean Rushton said the latest official home loan approval figures for November, 2011, from the Australian Bureau of Statistics (ABS) displayed an eighth consecutive month of growth.
“The consecutive growth seen in the second half of 2011 should continue while consumers act upon repeated rate cuts by the RBA in November and December, “Mr Rushton said.
According to the latest ABS data, home loan approvals nationwide in November, 2011, were up 1.4 per cent from the previous month and had increased 1.5 per cent year-on-year.
“Consumers will likely remain confident in the housing finance market with the strong possibility of a rate cut in February. This should fuel a significant number of approvals in the coming months, which will stimulate many struggling sectors in the economy.”
Mr Rushton said approvals inNew South Waleswere up 4.9 per cent from October, 2011, and 9.4 per cent for the year.
“In NSW we’re seeing a significant demand brought forward by first home buyers acting before the 2011 deadline for the stamp duty exemption,” he said.
Mr Rushton said that the stamp duty exemption was lifted for purchase contracts signed before January 1st 2012 and that NSW would see finance activity remain high for the start of 2012 as those deals obtained financing.
Source: Priority Lending
