refinancing activity: Loans to investors, however, ticked higher by 0.7 per cent, despite the total value of all home loans down 0.2 per cent, according to Australian Broadcasting Corporation. In a note to clients, JP Morgan economist Tom Kennedy said refinancing activity was a major drag, meaning genuine new loan growth was somewhat better than the headline print would suggest . Photo Australia owner occupier versus investors Source ABS, JP Morgan While refinancing activity has buoyed the numbers in the current cycle, the annual run rates for total and ex-refinancing loans have been slowing, wrote JP Morgan economist Tom Kennedy. ABC News Nic Mac Bean Map Australia The volume of new home loans to owner-occupiers has fallen 0.8 per cent month-on-month in October, according to the latest figures from the Bureau of Statistics. This owes to a string of weak refinancing prints, with the data having contracted in five of the past six months, which suggests some reluctance on the part of banks to facilitate equity withdrawal. Data from Core Logic shows property prices across the combined capital cities continue to rise month-on-month, so I wouldnt be surprised to see a lift in the total value of all dwelling commitments, said Mortgage Choice chief executive John Flavell. Mortgage Choice, meanwhile, said it was not surprised to see a slight moderation in home loan demand, but noted that total demand still remains strong by historical standards.
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Tagged under refinancing activity, headline print topics.