Home loan commitments rose sharply in July
The value of new loan commitments for housing rose sharply in July, up 8.9 per cent, seasonally adjusted, according to the latest Australian Bureau of Statistics figures released today.
ABS head of Finance and Wealth, Amanda Seneviratne, said: “July owner occupier home loan commitments rebounded with the largest month-on-month rise in the history of the series, as social distancing restrictions eased in most states and territories."
The value of new loan commitments for owner occupier housing rose 10.7 per cent, while investor housing rose 3.5 per cent. The number of owner occupier first home buyer loan commitments rose 14.4 per cent.
“New loan commitments for owner occupier housing rose in all states and territories, except the Australian Capital Territory. The largest increases were in New South Wales, Victoria and Queensland", Ms Seneviratne said.
“The value of new loan commitments for owner occupier housing in Victoria rose 8.9 per cent in July, reflecting the period of eased COVID-19-related restrictions prior to restrictions tightening again from later in July."
The value of new loan commitments for fixed term personal finance rose 6.9 percent in July, seasonally adjusted, and was 11.0 per cent below the pre-COVID-19 levels of February.
"Lending to small and medium sized businesses decreased in original terms in July after rising strongly in June. June’s rise and July’s fall in lending to small and medium businesses were largely caused by end of financial year behaviours", Ms Seneviratne said.
These new series have only been collected since July 2019, so there is not yet sufficient data to seasonally adjust them.
The ABS appreciates the continued support of APRA and lending institutions in providing the data used to compile this publication and for the additional data insights being provided by lending institutions.
More information is available in Lending Indicators, Australia (cat no. 5601.0).
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