Home loan commitments partly recover in June

The value of new loan commitments for housing rose in June, up 6.2 per cent, seasonally adjusted, according to the latest Australian Bureau of Statistics figures released today.

ABS Chief Economist, Bruce Hockman, said: “The rise in housing loan commitments in June reflects the easing of COVID-19 restrictions in May on auctions, open houses and mobility in general.”

The value of new loan commitments for owner occupier housing rose 5.5 per cent, while investor housing rose 8.1 per cent. The number of owner occupier first home buyer loan commitments rose 3.3 per cent.

“Despite the rebound in lending activity, the value of housing loan commitments in June was down over 10 per cent compared to March after large falls in April and May,”

Mr Hockman said.

The value of new loan commitments for fixed term personal finance rose 5.2 percent in June, seasonally adjusted, led by a 20.4 per cent rise in the value of new loan commitments for road vehicles.

Mr Hockman added: “The easing of COVID-19 restrictions drove the rises in May and June but commitments for road vehicles and total fixed loan commitments for personal finance remain below the pre-COVID level.”

The ABS appreciates the continued support of APRA and lending institutions in providing the data used to compile this publication and for the additional data insights being provided by lending institutions.

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