Australian home loan approvals down for third month despite central bank cutting main interest rates-BBC

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2/10/13, "Australia home loan approvals decline for third month," BBC

"Australian home-loan approvals are down for a third month despite the central bank cutting its main interest rates.

Approvals fell 1.5% in December from November, the statistical bureau said.

Australia's central bank cut interest rates four times in 2012 in an attempt to boost investment and growth in non-mining sectors such as construction.

However, analysts said many mortgage lenders had not passed on the lower borrowing costs, while consumers feared that rates may climb again.

"First-home buyers need to know that rates are going to stay down for them to have the confidence to jump into the market," said Brian Redican, a senior economist at Macquarie.

In an effort to offset slower global growth and stimulate the domestic economy, Australia's central bank lowered its key interest rate from 4.25% at the start of last year to 3% in December.

However, mortgage costs have taken longer to come down."...


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