Housing loans drop 4.1%
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The news: New housing loans dropped by 4.1% in value during December 2023 to $26.27 billion, as owner occupiers and investors sought less funds from lenders.
The fall erased a gain of 0.7% in November, according to the Australian Bureau of Statistics.
The numbers: Owner occupier loans dropped by 5.6% to $16.77 billion for December – a greater percentage decline than the overall housing loan reduction.
Investor loans slipped by 1.3% to $9.5 billion.
Personal loans dropped 2.4% to $2.32 billion.
There was a different story in business lending as construction loans rose by 3.3% to $2.31 billion and business loans for property purchases improved by 1% to $5.32 billion.
The context: Despite the December decline in new housing loans, the figures were 11.7% higher than the same period in 2022.
Borrowing could increase in 2024 if the Reserve Bank cuts the cash rate, as many analysts have tipped. The first Reserve Bank of Australia (RBA) monetary policy decision meeting of the year will be held on Monday.
Inflation data published this week by the Bureau of Statistics showed a slight drop to 4.1%.
The source: Australian Bureau of Statistics
