Slight Easing In Housing Market

Even before Tuesday's first official interest rate rise demand for home loans eased for a second straight month in August.

Official data released showed 62,718 mortgages were granted in August, 0.6 per cent seasonally-adjusted decline from the previous month.

A downwardly-revised 2.2 per cent fall in demand for home loans in July ended nine straight months of growth.

First time home buyers were down for the month of August only making up 24.7 per cent of mortgages. This was down from a record 28.5 per cent in May.

The Federal Governments first home owners grant has been wound back to $10,500 for established homes and to $14,000 for new properties since October 1st.

RBA Governor Glenn Stevens stated that the boards view is that it is now time to gradually begin lessening the stimulus provided by monetary policy.

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Published on October 10-th, 2009 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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