Mortgage market still weak

Home lending was down 2.2 per cent in August to the lowest level since March 2001. 48,903 new mortgages for owner occupied housing were started in August. Auction clearance rates are improving but remain below long term averages according to Australian Property Monitors. New home building is expected to remain weak until well into 2009 said the HIA. Lenders report that there has not been a spike in applications for new loans since the RBA's shock one per cent cut to official interest rates.

Source: The Australian Financial Review