Home loan approvals bounce back

The number of home loans issued in Australia rose 1.5 per cent in February, but still fell short of forecasts.

Home loan approvals bounce back

The number of home loans issued in Australia bounced back in February, but still fell short of economists’ forecasts.

The number of home loans granted rose 1.5 per cent in seasonally adjusted terms in the month to 55,562, according to the Australian Bureau of Statistics. That compared with analysts’ forecasts for a 2 per cent rise.

The February result followed a pullback in January driven by owner-occupied lending.

However, the December and January housing market data tends to be less reliable due to the holiday season.

Lending to both investors and owner-occupiers enjoyed a boost in February, lifting 4.1 per cent and 1.7 per cent respectively, based on their value.

The value of total housing finance was up 2.6 per cent in the month.

The number of home loans issued in Australia hit an eight-year high in December.