Home Loans Getting Back to Life
The Australian Bureau of Statistics today has released a data showing the number of quick cash loans such as cash advance loan, payday loan Australia, cash advance payday loan rose 2.5 per cent to buy owner-occupied housing while handily beating forecasts for 1.5 per cent. Most of these instant cash loans are home loans which rose in six months in November while lending to buy new homes jumped a positive for the economy and a major surprise given mortgage rates had risen sharply that month. The report also shows the progress on the Australian dollar about a fifth of a US cent. And this report shown suggests non-bankers lenders are beginning to make a comeback with their loans climbing 18.4 per cent in November while bank mortgages dipped 0.2 per cent.
The Chief Economist at UBS, Scott Haslem said that there is certainly evidence that housing lending has troughed which is clearly a positive sign for some modest pick-up in housing credit growth. Despite a move in early November by the Reserve Bank to raise its cash rate, still the gains came with 25 basis points to 4.75 per cent as a pre-emptive strike against inflation. Major Banks blame higher funding cost in the wake of the global financial crisis which made them lifted their mortgage rates even more.
Michael Turner, the Strategist at RBC Capital Markets said that with the interest rates now deemed to be in restrictive territory, broader housing market activity is likely to remain muted in the first half of this year. They are quiet skeptical that this level of housing finance will be maintained but on the contrary this news leave them marginally more comfortable expecting further RBA tightening in late Q2.
Paul Brennan, the Citigroup Global Markets Director said the better-than-expected housing finance figures showed the correction in housing was beginning to level out. But building approvals are still down about 15 per cent from the peak early 2010 which can be concluded as the housing is going to detract from GDP growth over the next two quarters. And this could also affect cash loans and payday loans like cash advance payday loans and payday cash advance. On the other hand, this could make a big boost to housing construction with all of the floods in Queensland but that is expected to happen for later in the year.
