The latest figures from the ABS has shown that in November 2010, the number of owner occupied home loans rose by 2.5% despite the increase in interest rates reported Domain & SMH. This rise was the largest in six months for both new homes and construction of new homes, with investment still falling another 2.3%.
“There is certainly evidence here that housing lending has troughed,” said Scott Haslem, chief economist at UBS. “This is clearly a positive for some modest pick-up in housing credit growth which has been ebbing lower over recent months.”
Simon Reibelt from Oasis Home Loans Northern Beaches said that the figures was a surpirse in light of the current market conditions and despite banks hiking rates beyond RBA standards.
