DEMAND for home loans grew at a solid pace in January prior to official interest rate increases in February and March, new data shows.
The number of people obtaining finance for owner-occupation of a home in January was 67,886, a 2.3 per cent seasonally-adjusted rise compared to December, Australian Bureau of Statistics data shows.
Economists had expected a 0.5 per cent increase.
The value of the loans for owner- occupiers in January totalled $15.9 billion, a 1.7 per cent increase on the previous month.
The demand for home loans bucked a decision by the country’s major banks in January to independently raise their mortgage rates to recoup increased borrowing costs in international credit markets.
Survey: Have you been hurt by rising rates?
The Reserve Bank of Australia raised its key cash rate to a 12-year high of 7.25 per cent last week in a further attempt to cool inflation.
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