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.
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