Economists believe that overall signs of weakness are still present in the Australian Home Loan Sector and as a consequence RBA will need to keep the interest rates at current levels for the moment.
According to the ABS, Australian home loan commitments for owner-occupied housing rose 1.7 per cent in July, seasonally adjusted, to 47,511.
This result was above the average market forecast of a 1 per cent rise in mortgage commitments in the month.
Nonetheless this was a very small discrepancy from the anticipated amount.
RBA would want to see a couple of additional months of positive data before making any interest rate changes.
‘‘The sustained weakness in housing finance suggests that property prices are likely to consolidate,’’ he said. ‘‘Given that auction clearance rates have fallen and we’ve seen a general lack of demand, I think it will take the Reserve Bank to remain on the sidelines to give consumers and potential homebuyers confidence to go out there and make purchases.’’
Total housing finance by value rose 0.7 per cent in July, seasonally adjusted, to $20.854 billion.