Stephen Koukoulas - Housing Finance
With the eyes of the Reserve Bank firmly on the housing market, the release of the housing finance data will be scrutinised for more clues on the extent of the cooling in demand for housing. Over recent months, there has been a cooling in housing finance growth as a mix of tighter regulation, a lift in mortgage rates for investors and a more general souring in mood towards housing have all impacted.
In what is no doubt welcome news for the RBA, in the last few months loans for investment purposes have fallen, which has made room for some growth in borrowing for owner-occupiers. If these trends continue, the RBA will have a little more confidence that the banking sector, in particular, and the economy more generally, remains well away from any significant instability.
The Constant Investor is the new home of Alan Kohler, founder of Eureka Report and the ABC's finance presenter. Join to receive - Kohler's Weekly Overview, exclusive stock tips, investment ideas, podcasts and much more. Click here to learn more.