Australia: Housing finance approvals softening - Westpac

Matthew Hassan, Research Analyst at Westpac, notes that Australian housing finance approvals softened notably in June, with number of owner occupier loans declining 1.1% vs and the value of investor loans down 2.7%.

Key Quotes

“The owner occupier figures were in line with Westpac's view but below the consensus forecast for no change. The update brings the finance data more into line with other market indicators showing a material further slowing in recent months with the finance detail pointing to weaker investor activity as the main driver.”

“Overall, the June finance data is more in line with the wider housing market data, which continues to show a clear softening in conditions since May. That softening likely relates to tighter lending criteria, the finance detail suggesting this has led to a further pull back in investor activity to quite weak levels by recent historical standards.”