Average bank loan swells

Housing finance commitments continued their downward trend in September, falling for the eighth month in succession, according to the Australian Bureau of Statistics. Commitments of 47,435 were the lowest September since 2000, with both banks and non-banks decreasing by three per cent compared to August.

Bank commitments are four per cent lower than three months ago, 16 per cent less than six months ago and down a fifth against the corresponding month a year earlier, but the average loan size continues to increase.

The banks are providing fewer loans, but at a higher value, with the average in September 2008 being $260,000, up from $257,000 in June, $247,000 in March and $238,000 in September 2007.

Non-bank average lending values continue to decrease. The September 2008 average was $179,000, June $181,000, March $187,000, and September 2007 $223,000.