Australia reported that home loan approvals rose in November as the Reserve Bank of Australia delivered its first rate cut in 2011. Loans for houses and apartments rose 1.4%, beating analyst expectations of a 1% growth. First time home buyers rushed into buy homes and the report shows that they accounted for 20% of home loans in November. The report showed that the lending to owner occupied homes rose 2.2% and that lending to investors rose 1.8%. The Reserve Bank of Australia was concerned about the inventory of unsold homes and general construction activity amid a crisis in Europe. This prompted the RBA to cut rates by 25 basis points in November and another 25 basis points in December. Soon after the RBA decision, banks in Australia cut rates on home loans. Read more
