home loans rise at fastest pace since 2009

This should bode well for FFF, now we need an update re capital raising/share consolidation etc etc.


BRISBANE, May 14 AAP - Owner-occupier home loan approvals have
posted the strongest jump in four years.
Personal and business financing are also showing signs of
growth, following a series of interest rate cuts.
But home loan approvals are experiencing the strongest revival,
rising by 5.8 per cent in March to cap off a 9.3 per cent increase
since the start of 2013.
Commonwealth Securities economist Savanth Sebastian says it is
the strongest quarterly rise in mortgages, at the start of a
calendar year, since early 2009, after some first-home buyer grants
were tripled.
"The low-rate environment is starting to foster a bit of
activity," he said.
"It could be the first signs of a revival in lending but it's
still early days."
Still, the latest surge in loans may not stop the Reserve Bank
from cutting interest rates further, from the current record low of
2.75 per cent.
"Rates at these sorts of levels haven't, in the last few months,
fostered significant revival in activity," Mr Sebastian said.
"If anything, it's only been incremental improvements."
The Australian Bureau of Statistics lending finance data,
released on Tuesday, show housing finance growing at an annual pace
of 12 per cent, the strongest in four years.
During March, personal finance loans rose by 0.6 per cent, while
commercial lending ticked up by 1.5 per cent.
Lease financing, however, fell 4.1 per cent.
Banks are expected to work harder to win personal and business
loan customers, as consumers choose to pay down more debt, Mr
Sebastian said.