The latest lending indicators for Australia, covering new borrower-accepted finance commitments for housing, personal, and business loans for July 2023, reveal a mixed landscape for the country’s financial sector.
Key Highlights:
- Date of Release: September 1, 2023
- Reference Period: July 2023
Housing Loan Commitments:
- New loan commitments for housing fell by 1.2% in July 2023. The total value was $24.19 billion.
- Owner-occupier housing loans decreased by 1.9%, amounting to $15.57 billion.
- Investor housing loans showed a marginal decrease of 0.1%, totaling $8.62 billion.
Personal Loans:
- Personal fixed-term loans experienced a notable increase of 4.7%, reaching $2.30 billion.
Business Loans:
- Business construction loans fell sharply by 21.5%, a typically volatile series.
- Business purchases of property also declined by 5.1% but rose by 0.7% in trend terms.
Important Data Quality Notes:
- The number and value of new loan commitments to first home buyers have not been published this month due to data reporting issues. These series are temporarily suspended.
- The seasonal adjustment methods, treatment of Buy Now Pay Later products in personal finance, and personal finance household goods series are essential considerations.
Analysis:
In July 2023, the housing market in Australia saw a decline in new loan commitments, particularly for owner-occupier housing. Investors also exhibited caution with a slight reduction in commitments. Personal loans, on the other hand, recorded a notable increase in personal fixed-term loans, indicating potential consumer spending.
Business loans, particularly in construction and property purchases, experienced fluctuations. These variations are expected due to the inherent volatility in these sectors.
The external refinancing market hit a new record high, suggesting a strong demand for refinancing options in the housing sector.
Average Loan Sizes:
Average loan sizes for owner-occupier dwellings increased by 2.2% nationally, reaching $593,000. This rise reflects changing trends in property markets and lending practices.
Regional Variations:
There were regional variations in loan commitments. In seasonally adjusted terms, some states experienced decreases in owner-occupier and investor housing commitments, while others saw notable increases.
Conclusion:
Australia’s lending indicators for July 2023 portray a diverse and evolving financial landscape. While housing loans faced a dip, personal loans showed growth, and business loans experienced fluctuations. The record high in external refinancing indicates ongoing interest in mortgage refinancing options.
As the financial sector continues to adapt to changing market dynamics, these indicators provide valuable insights for investors, policymakers, and consumers.
Please note that data quality notes and seasonal adjustments should be considered when interpreting these figures.
https://www.abs.gov.au//statistics/economy/finance/lending-indicators/jul-2023