First time home buyers were again at the forefront of demand for new home loans in June, taking advantage of both low mortgage rates and a more generous federal grant.
New official data released on Monday showed first home buyers made up 27.1 per cent in June, just shy of a revised 28.5 per cent record in May.
Overall demand for mortgages rose by a seasonally adjusted 1.1 per cent in June for owner-occupiers over the previous month to 65,151 loans, Australian Bureau of Statistics data showed.
This was the ninth monthly consecutive increase and compared with economists’ forecasts that had centred on a 1.8 per cent rise in June.
However, economists expect the stimulatory boost from low rates and a large grant will fade in the second half of the year.
The federal government’s increased first home owners grant provides $14,000 for the purchase of an established home and $21,000 for a new property, but will be pared back to $10,500 and $14,000 respectively from October 1.
It is scheduled to return to its original $7,000 for both categories from January 1, 2010.