Australian NAB sees faster rise in housing demand, cuts fixed mortgage rates
ADds executive comments on the housing market, background
February 22 (Reuters) – National Australia Bank Ltd NAB.AX said on Monday it saw a faster-than-usual increase in domestic housing market demand after Christmas and lowered some fixed mortgage rates.
NAB, which last week saw a rebound in quarterly profits from the previous two quarters and highlighted an improving economy, said it expects house prices in Australian capitals to rise. about 10% this year.
Housing demand in Australia is expected to benefit from record interest rates as the central bank pledged to keep borrowing costs low for several years and ease COVID-19 lockdowns in the country.
“We are seeing very strong demand in the housing market, with post-Christmas activity picking up much faster than usual. This happened despite the continued challenges presented by the pandemic, ”said Andy Kerr, director of homeownership, a unit of NAB.
“In recent months, mortgage loan applications have been at their highest level in several years, with buyers flocking to the market again after a quiet period during nationwide lockdowns,” Kerr said.
Australian home loan approvals jumped 8.6% in December from the previous month, according to official data this month, as house prices hit a record high.
Australia’s second-largest lender by market value said its fixed three- and four-year rates on home loan plans were now below 2%, while fixed rates on a 5-year loan package were down 55 points base at 2.29%. (https://nab.co/3dBnOI6)
(Reporting by Shashwat Awasthi in Bengaluru; editing by Vinay Dwivedi)
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