Fresh figures released by the ABS show that the value of home loans in April was substantially lower than the prior month.
The value of all dwelling commitments written throughout April was $31.99 billion, down 1.8 per cent on March.
Mortgage Choice chief executive officer John Flavell said the data suggests a lot of refinancing activity is taking place.
Despite the drop in value of dwelling commitments, Mr Flavell said the property market remains relatively robust as the number of home loans written increased on the previous month.
In April, 57,576 home loans were written, an increase of 1.7 per cent on March.
“This level of growth is quite impressive and serves to highlight how strong the Australian property market continues to be,” Mr Flavell said.
“Over the months ahead, I would expect home loan demand to remain strong, especially as the latest round of home loan interest rate cuts start to filter through the market.
“With many of Australia’s lenders passing on the Reserve Bank’s rate cut in May, the cost of borrowing has become more affordable than ever before, which will help to keep heat in the market.”
[Related: New home sales past cycle peak]
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