Australia - Housing finance data for September
- Home loans +1.6% m/m (expected -1.6%, prior was -2.7%, revised from -3.0%)
- Investment lending +4.6% m/m (a huge jump from the prior -0.8%, revised from+0.1%)
- Owner-occupied loan value +0.9% m/m (prior was -1.0%, revised from -1.6% )
That's a huge jump in investment lending, biggest since August of last year
Westpac's initial take (in brief):
Owner occupier finance approvals ... the detail a little softer
- gain was led by strong refi activity - ex refi loans were up just 0.5% and down in value terms (-0.8%mth) implying average loan size was quite a bit smaller
Other detail showed a flat month for construction-related lending.
Separate figures on the value of investor finance loans on the strong side.
- notable as it means the total value of housing finance loans is up in the month with a clear firming since the recent low in April
- Suggests other data pointing to a firming in housing market conditions is genuine and that the bulk of the lift is coming from domestic investor activity
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