More Australians signing up for home loans
House hunters are emerging from their winter slumber to take advantage of low interest rates, breaking into the real estate market in droves, recent figures have suggested.
The latest data on Australian home loan activity showed a 1.8 per cent increase in mortgage approvals in August to 45,821 - indicating renewed confidence in the residential property market.
In June home loan approvals increased by 1.3 per cent and in June they dropped by 0.7 per cent.
The recent spike in loan approvals is largely attributed to low interest rates and increasingly favourable economic conditions, experts have said.
Including this month's interest rate cut of 25 basis points, the Reserve Bank of Australia (RBA) has slashed the official cash rate by one per cent since the beginning of the year - a move that has been welcomed by homeowners nationwide.
But one expert is reluctant to call it a property revival, saying housing finance figures have been fickle this year and are still trending below what they have been in the past.
"It will be interesting to see whether new loan commitments experience any sort of lift following the constructive measures taken by the European Central Bank and the US Federal Reserve as well as the RBA's October interest rate cut," JP Morgan economist told News Limited.