Buyers Shake Off Rate Rise
The Age
Saturday February 10, 2007
HOME buyers have unexpectedly shaken off the Reserve Bank's latest rise in interest rates. The value of home lending jumped 2 per cent in December, with owner-occupiers and investors alike raising the stakes.
In a trend that could give the Reserve Bank an itchy trigger finger over interest rates if it continues, Queensland, Western Australia and Victoria led the way in increasing demand for new loans.In December alone, after seasonal adjustment, Victorians borrowed a record $3.03 billion to buy, build or refinance their homes, with the number of loans to owner-occupiers rising for the second month in a row.The Reserve will deliver its quarterly assessment of the economy on Monday, and economists expect it will declare that, while no imminent change in interest rates is on the cards, it is still leaning towards another rate rise rather than a cut.
© 2007 The Age
