RBA: Mortgage market defies recession
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.
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