A month after the Australian Bureau of Statistics reported the biggest ever fall in the value of new housing loans, the mortgage market has bounced back.
The value of new housing loan commitments fell 11.6 per cent in May, compared with the previous month. In its latest update, the ABS reported that new housing loan commitments were up 6.2 per cent in June.
Despite the bounce, the value of new lending in June was 10 per cent down on the March figure after big falls in April and May.
The ABS said the rise in June reflected the impact of the easing of COVID-19 restrictions on auctions and house inspections.
The value of new loan commitments for owner occupiers rose 5.5 per cent in June, while housing finance for investors rose 8.1 per cent.
New lending to first home buyers rose 3.3 per cent. Owner occupier first home buyers accounted for 31.3 per cent of all owner occupier commitments.
The June rise was driven by the purchase of existing dwellings, while lending for construction and purchases of new dwellings both declined.