August Home Lending Figures Are Out, And All Looks Safe On The Housing Bubble Front

Getty/ John Moore

Australian home lending fell 1.2% in August, with the ABS reporting a seasonally adjusted total of $23.8 billion in new home loans issued throughout the month.

The total number of new loans fell 3.9%, against market expectations of a 2.5% fall.

By value, owner-occupied home loans fell 1.9% to a seasonally adjusted $15 billion, while investment loans held steady at $8.8 billion.

For monetary policy however it is trends that matter most. On that front, signs are positive: overall housing finance is trending up 0.5%, with owner-occupied home loans up 0.4% and investment loans up 0.8%.

None of this data should alarm anyone who is concerned about a housing bubble.

Chances of a growing debt-fuelled bubble are remote at best, with borrowing fairly stable and the proportion of first home owners – who usually have more leverage – falling.

The RBA has its eye on housing but for the moment, it’s far from frothy.

Follow Greg McKenna on Twitter.

Follow Business Insider Australia on Facebook and Twitter

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.