Home loans on rebound
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.