Home loans on rebound

Townsville Bulletin - - NEWS -

THE num­ber of home loan ap­provals has bounced back af­ter de­clin­ing for three months in a row.

Ap­proval num­bers were up 1.0 per cent in May, but the gain fell short of mar­ket ex­pec­ta­tion of a 1.5 per cent rise.

The value of to­tal hous­ing finance rose a sea­son­ally ad­justed 1.3 per cent to $ 33.03 bil­lion in the month, Aus­tralian Bureau of Statis­tics data shows.

Owner- oc­cu­pier ap­provals led the gains, with their value up 2.9 per cent in May.

But investment hous­ing con­tin­ued to be im­pacted by tighter in­dus­try reg­u­la­tions, with the loans value de­clin­ing 1.4 per cent. That set off a fresh round of rate in­creases by the ma­jor lenders, with banks repric­ing their loan books to make in­ter­est- only and in­vestor loans more ex­pen­sive to com­ply with the new lim­its.

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