Fresh research has shown that the demand for home loans continues to be strong, with the number of dwelling commitments approved rising by 0.5 per cent throughout January.
According to the latest housing finance data from the Australian Bureau of Statistics, 55,153 home loans were written throughout the month of January – up from 54,876 loans written the month prior.
Commenting on the results, Mortgage Choice chief executive officer John Flavell emphasised that January was the sixth consecutive month of growth for home loan approvals.
“The latest data suggests that current low interest rates are continuing to fuel buyer demand for property,” he added.
Additionally, there was an increase in the value of home loans written over the month.
In total, nearly $34 billion of home loans were approved throughout January – up 1.5 per cent on the month before.
“This can be largely attributed to the increase in value of investment loans approved,” Mr Flavell said. “During the month of January, more than $13.7 billion in investment loans were approved – up 4.2 per cent from December.”
Meanwhile, the value of owner-occupied housing loans declined by 0.2 per cent to $20.1 billion.
Looking ahead, Mr Flavell said that he expects home loan demand to continue to rise over the next couple of months.
“We are now in autumn, and traditionally people will want to buy a home and settle before the winter period,” he said.
“On top of that, interest rates remain at historically low levels, which is helping to keep heat in the property market.
"Whilst interest rates remain low and the cost of borrowing continues to hover around these incredibly affordable levels, people will continue to buy and invest in property.”
[Related: Home loan demand surges in December]