Home loan approvals in Australia unexpectedly fell in November as policymakers try to cool down an investment-led housing boom. Total home loan approvals fell 0.7 per cent in November, versus predictions for a 1.7 per cent gain. The slide follows a downwardly revised 0.2 per cent gain in October, said the Australia Bureau of Statistics.
The value of mortgage loans to investors fell by 2.2 per cent, breaking a five-month upward streak. That’s the biggest fall since last January. A 1 per cent gain the prior month was also cut in a half, in revisions.
In recent months the Australian Prudential Regulation Authority has been increasing its scrutiny of the lending market, as policymakers become concerned that it had become unbalanced due to speculative demand. In December the APRA tried to persuade banks to cap lending growth to investors at 10 per cent a year.
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