Moderating lending activity may point to a rate cut

January 15th,2015

The latest housing finance figures released today by the Australian Bureau of Statistics (ABS) reflect moderating activity in the housing market.

The Real Estate Institute of Australia (REIA) says the figures for November 2014 show, in trend terms, that the number of owner-occupied finance commitments was unchanged. This is the second consecutive month of no change. If refinancing is excluded, in trend terms for November, the number of owner-occupied finance commitments fell by 0.4 per cent.

REIA President, Neville Sanders says, “Decreases were recorded in all states and territories except for Victoria and the ACT. Tasmania had the biggest fall of 1.3 per cent. The largest increase was recorded in the ACT – up 1.2 per cent.”