Mortgage numbers remain soft in July

Housing finance to owner-occupiers remained relatively soft in July, increasing by 1%, according to ABS figures.

The figure was close to market expectations (1.5%) but only half of the 2% increase forecast by Westpac.

New lending, excluding refinancing, advanced by just 0.3%, and lending for the construction of new dwellings declined by 0.8%.

Queensland recorded a 2.3% increase in owner-occupier mortgages, with Westpac commenting that the market has yet to fully recover from the disruptions of early this year.

“Queensland state government incentives for the housing sector kicked in during August. Anecdotes suggest that Queensland housing finance did improve significantly in August,” says Westpac.

Investor activity picked up in July, with mortgage for investment purposes increasing 1.9% over the month.

The July figures follow the release of mortgage approval numbers for August from mortgage broker AFG – a month ahead of the ABS figures – which writes 20% of all mortgages in Australia.

The broker recorded a 21% increase in mortgage approvals, suggesting a turnaround is on the cards ahead of spring.