Wednesday, August 01, 2012

Aussie mortgage growth falls short of forecast

Mortgage growth in Australia remains at a record low despite recent interest rate cuts, according to new private credit data released by the Reserve Bank of Australia (RBA).

Even with a 50 basis point cut in May and 25 basis point cut in June, housing credit climbed just 0.3 percent in both months bringing the cash rate to 3.5 percent from 4.25 percent.

Mortgages to owner-occupiers increased by 0.2 percent in June, the lowest growth in the segment since 1990, while loans to investors were slightly higher at 0.5 percent.

In the first half of 2012, housing credit also witnessed its smallest annualised rate of growth since 1977 at 5.1 percent.

Moreover, overall credit given to the private sector by financial intermediaries climbed 0.5 and 0.3 percent in May and June respectively and grew by 4.4 percent in 1H2012.

The figure for June stayed below the 0.4 percent median growth forecast by economists surveyed by Bloomberg
last week.
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