Mortgage market soft
New lending to home buyers has fallen for the second month in a row, driven by weaker demand from owner-occupiers.According to the latest Australian Bureau of Statistics housing finance data, the value of new housing finance commitments fell one per cent in August, compared with the previous month (in seasonally adjusted terms). The value of new lending to owner-occupiers fell 1.6 per cent month-on-month, while new lending to investors rose 0.1 per cent.In trend terms, the value of new mortgage lending to owner-occupiers has fallen each month since last December.The A$31.4 billion of new mortgage lending in July was down 4.9 per cent, compared with the same time last year.The average loan size was $363,300, compared with $360,900 in July.First-home buyers accounted for 13.4 per cent of housing finance commitments in August. The ABS has revised its first-home buyer data series as a result of "improved reporting of survey and administrative data."The ABS identified a problem with its first-home buyer data in 2014, when it reported that some lenders were reporting only loans extended to first-home buyers who also received a First Home Owner Grant. The ABS adjusted its estimates to account for what it saw as under-reporting.Since then the ABS and the Australian Prudential Regulation Authority have been working with lenders to ensure all loans to first-home buyers are reported.The ABS said that from August the first-home buyer number no longer needed adjusting, as most lenders were reporting correctly.The ABS has revised its number back to October 2012. The revised estimates show fewer first-home buyers than previously reported.