From CBA today (see also my post below):
"Overall, the October housing finance figures confirm that the recent uptrend in demand for mortgages remained intact in October. Housing finance approvals have risen strongly over the past seven months. Since March 2011, the number of all housing finance approved has risen 15% while the total value of loans written has lifted by 10.2%. The 0.7% increase in the number of owner‑occupied loan approvals to 51,981 in October took the number of loans to its highest level since December 2009 – when the first home buyers grant was phased out.
The continued resilience of housing finance approvals in October occurred in an environment of continuing jittery consumers and the ongoing market ructions in global markets with the epi‑centre being the seemingly intractable problems relating to the Eurozone sovereign debt crisis. Confidence has since improved. And there have been two RBA 0.25% rate cuts since October (ie after the November and December RBA Board meetings). Indeed, consumer sentiment rose strongly in November, following the RBA’s Cup day rate cut, and the December rate cut should help further bolster household confidence and help boost housing finance approvals in late 2011 and early 2012.
The recovery in owner‑occupier loan volumes has been boosted by a recovery in first home buyer approvals. The number of first home buyers in October was 22.5% up on a year ago, compared to a 3.4% rise for non‑first home buyer loan approvals over the same period."
