RBA: Mortgage market defies recession

By BN | 30 Jun 2009

The latest data released by the RBA shows the Australian mortgage market continues to remain largely resilient to the effects of the global recession - though growth in lending to investors remains weak

The official figures for May revealed that housing credit increased by 0.5% over May, following an increase of 0.6% over April. Over the year to May, housing credit rose by 7.0%.

The RBA reported that the rise in housing credit over May was mostly due to growth in lending to owner-occupiers - lending to investors rose by only 0.1% in May compared to 0.4% growth in April with growth over the year to May up by 3.8%.

Business credit fell by 0.7% over May 2009, following a decline of 0.5% over April.  The RBA attributed this fall to and the overall decline since business credit reached its peak in November 2008 due to falls in foreign currency denominated lending.

Related stories:

Bank lending on the rise - Low interest rates and government stimulus actions have resulted in increased bank lending.

 

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