The Reserve Bank’s first rate reduction of 0.25 per cent in September has triggered a pick up in the first home buyer sector.
According to ABS data released today first home buyer commitments as a percentage of total owner occupied commitments rose to 19.7 per cent in September from 18.6 per cent in August.
Since September rates have fallen another 1.75 per cent while the first home owner grant has been increased, further incentivising would-be buyers.
Overall, total owner occupied housing commitments fell 2.7 per cent in September, with refinancing activity contracting by a significant 8.1 per cent.
Financing for the construction and purchase of new dwellings rose by two and 3.6 per cent respectively, although these still remain 15.9 and 43 per cent down on September last year.
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