New loan commitments for housing steady in March

The value of new loan commitments for housing rose 0.2 per cent in March, seasonally adjusted, according to the latest Australian Bureau of Statistics figures released today.

The value of new loan commitments for owner occupier housing rose 1.2 per cent, while investor housing fell 2.5 per cent.

ABS Chief Economist, Bruce Hockman, said: “New loan commitments for housing were steady in March despite escalating COVID-19 restrictions. March loan commitments largely reflected loan applications submitted in February or the first half of March before major restrictions were introduced.

“Some lending institutions reported a slowdown in new loan applications towards the end of March.”

The value of new loan commitments for fixed term personal finance fell 8.2 per cent in March. This was driven by weaker lending for road vehicles (down 10.2 per cent) as well as a sharp decrease in the much smaller travel and holidays series (down 42.8 per cent).

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 provided by lending institutions this month.

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