The housing market continues to simmer, but may have come slightly off the boil.
Reserve Bank data released this afternoon showed both investors and home buyers borrowed less in June than in previous months.
People are still clamouring to borrow, with $8.5 billion borrowed for mortgages last month alone, a new high for the month of June.
That’s slipped from a peak of $10.5 billion in March.
First home buyers still want in on the market, with lending to that group reaching $1.65 billion in June, a drop from $1.75 billion the month before.
In a sign investors may be stepping back, there’s been a noticeable shift in lending to them, particularly when it comes to high risk lending.
In March. $2.3 billion dollars was lent to investors, but by last month it had fallen to $1.4 billion.
The Loan to Value Restrictions reinstated by the Reserve Bank in an effort to slow down investors also appear to be working, with a noticeable decline in the amount of high risk, LVR lending. That’s dropped for the 7th consecutive month.
Over $50 billion has been handed out in mortgage lending in the first six months of this year alone.