Floods hit home loans but econ­o­mists pre­dict re­bound

Townsville Bulletin - - Investor -

FLOOD­ING in Queens­land led to a fall in the num­ber of home l oan ap­provals i n Jan­uary al­though econ­o­mists ex­pect a pick up dur­ing the re­build­ing phase.

The Aus­tralian Bu­reau of Sta­tis­tics re­ported yes­ter­day that home loans ap­proved na­tion­ally in Jan­uary fell by 4.5 per cent to a sea­son­ally ad­justed 48,871.

Econ­o­mists’ fore­casts had cen­tred on a .5 per cent rise in hous­ing fi­nance com­mit­ments for the month.

Within the to­tal, floodr av­aged Queens­lan­dre - corded a drop of 16.4 per cent to the low­est level just one month short of a decade.

Ex­clud­ing Queens­land, the to­tal num­ber of home loans ap­proved in De­cem­ber was down by .7 per cent in Jan­uary af­ter a marginally larger in­crease in De­cem­ber.

Se­nior econ­o­mist Adam Carr said it was clear re­cent flood­ing in Queens­land had damp­ened the over­all num­bers, al­though he ex­pected a re­bound in the near term.

‘‘ You’d have to think, go­ing for­ward, that loans are go­ing to in­crease,’’ Mr Carr said.

‘‘ There’s a big re­build un­der way in Queens­land and ob­vi­ously that’s go­ing to flow through to lend­ing num­bers.’’ He did not ex­pect the num­bers to change fore­casts of fu­ture cash rate rises by the Re­serve Bank.

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