Home loans lift in August but still down 12.3% on last year: ABS

The news: The number of new owner-occupier loan commitments rose in August but remained significantly lower than a year ago, while loan-refinancing eased after hitting an all-time high last month, according to ABS data.

The numbers: Owner-occupier home loans increased by 2.5% to 25,404 in August, but were still 12.3% lower than the same time last year. Refinanced home loan commitments fell 5.4% for the month, after reaching a new high of 28,041 in the previous month, as owners scrambled to get better deals from lenders. Personal finance loans grew 6.1% to $2.5 billion in August, driven by a 5.9% increase in in lending for vehicle purchases.

The context: High interest rates have been pushing up the price of mortgages while rising costs have taken a toll on both builders and consumer wallets. Australian annual CPI rose slightly from 4.9% in July to 5.2% for the year to August, but analysts expect no change in the cash rate when the Reserve Bank board hands down its interest rate decision this afternoon.