Australian housing finance fell in August for the second consecutive month as waning government stimulus and expectations of higher interest rates crimped demand for mortgages.
Having enjoyed robust support from first-time homebuyer grants unleashed by the government to pump demand, economists expect home loan supply to correct further in coming months as the central bank embarks on a tightening cycle.
The number of housing-finance approvals in Australia fell a seasonally adjusted 0.6% in August from July and fell a revised 2.2% in July from June, the Bureau of Statistics said. Economists on average had expected a fall of 1.0% in August.In a breakdown of the data, the bureau said the number of finance approvals to build houses rose a seasonally adjusted 4.6% in August from July and the number of approvals to buy newly built houses rose 4.9%. The number of approvals for the purchase of established houses fell 1.5%.