Residential investor loans bounce back over November

Residential investor loans have bounced back over November according to the latest data from the ABS.

The value of residential investor loans approved in Australia increased from $11.3 billion to $11.6 billion over the month, an increase of 2.9 percent. This was the first monthly rise in the value of investor finance recorded by the ABS since June 2015.

Despite the rise in investor lending, November’s result remains well behind the monthly record reported over June of $15.5 billion.

The value of investor lending approved over the first 11 months of 2015 remains 12.1 percent higher than that recorded over the same period in 2014.  November’s total however is 5.2 percent lower than that recorded over November 2014.

Higher interest rates for investors as initiated by the financial regulator in the middle of last year, has clearly and significantly impacted activity from this group. Novembers result however may indicate that the recent sharp fall in lending may now be levelling out.

Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson