Demand for home loans fell to a nine-year low in April 2010 as rising interest rates dampen enthusiasm for housing, according to Sydney Morning Herald.
However, I must say whether demand for home loans drop or increase depends on how you interpret the data from ABS.
According to ABS, finance commitments for owner-occupied housing fell 1.8 per cent in April, seasonally adjusted, to 47,669. It was the fewest number of new loans for owner-occupiers since March 2001 and the seventh straight monthly fall in housing finance commitments. So if you just look at the number of home loans, the demand did drop to 9-year low.
However, the total housing finance by value rose by 0.8 per cent in April, seasonally adjusted, to $21.7 billion.
The value of home loans for owner-occupied homes rose 0.6 per cent to $13.707 billion, after seasonal adjustments.
The value of loans for investment homes rose 1.3 per cent to $7.993 billion.
So if you look at the value of home loans, it actually increased.
Anyway, the number of new home loans has fallen 26 per cent since its recent peak in June 2009 – it is very much a soft indication for property buying although investors are still actively buying investment properties.