Australia - October Home loans: -0.8% m/m (expected -1.0%, prior +1.6%)

Australian October housing finance data

Home loans -0.8% m/m,

• expected -1.0%, prior was +1.5%, revised from +1.6%

Investment lending +0.7% m/m

• prior was +5.1%, revised from +4.6%

Owner-occupied loan value -0.8% m/m

• prior was +0.8%, revised from +0.9%

There is a debate in Australia about housing being affordable to buy for occupiers (especially first home buyers) as compared to investors hoovering up housing. Thankfully here at ForexLive I don't have to get involved in that.

The issue to focus on for me is potential financial instability caused by runaway house prices and therefore exposure to the market by those with loans that may prove onerous to service should the economy turn down. If that happens you'll see a reeuction houslehold spending which is a negative for the economy.

FWIW, though, and for those interested in housing policy here in Oz, loans to investors look to be accelerating again: