Thursday, September 9, 2010

Home buyers returning to market

HOME buyers, lured by a steady interest rate outlook and cooling house-price growth, have been returning to the market, with demand for home loans picking up. At the same time, there are
emerging signs that some banks are again letting home owners borrow more, with some lenders starting to relax recent tight standards with the reintroduction of higher LVR loans.

Demand for home loans eased earlier this year, pressured by three consecutive monthly interest rate rises and ballooning prices along Australia's east coast. In May, housing credit was running at a three-month annualised growth rate of 6 per cent; however, this had since increased to 8.2 per cent.

Yesterday the Australian Bureau of Statistics released figures showing housing finance commitments rose 1.7 per cent in July, seasonally adjusted. The result easily beat the market forecast of a 1 per cent rise.

(Source: Sydney Morning Herald)

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