National house prices rose 0.7 per cent in June after a 2.1 per cent climb in May, according to Residex data.

This figure is just 0.5 per cent down from the peak in May 2008 and with no stabilisation in sight, said Residex senior economist Matthew Hassan.

Units have outperformed houses with an overall increase in the year to June of 3.4 per cent, and with Sydney and Melbourne ahead in the stakes showing increases of 11.4 per cent and 11.5 per cent respectively.

Hassan said this return to price growth would only add momentum to the upturn, which now appeared to be attracting more interest from upgraders and investors

Loans for new housing construction rise by 8%!

Home lending in Australia continued to strengthen buoyed by demand from first homebuyers and investors according to a new data.

The latest housing finance figure from the Australian Bureau of Statistics showed the number of new housing loans climbed by 2.2% in May to its highest level in more than a year. Loans for new dwelling construction recorded an 8% jump, while lending to buy new dwellings rose by 2.9%.

"The latest round of housing finance figures has reinforced the strength of the housing sector," said Savanth Sebastian, economist with CommSec. "The sustained improvement in overall housing activity and more importantly, the substantial jump in construction of new dwellings, will have multiplier effects throughout the economy. The sharp lift in home construction should ensure economic growth remains well supported."

Bank Fees

The banks like to take every opportunity to increase their fees and charges.
Some banks will fix the rate at loan approval but CBA fix at settlement so they have taken the opportunity to increase their fee in this current market

"Commonwealth Bank
25 May 2009

Rate Lock fee to increase and period to fix prior to interest rate change is reduced

As of 1 June 2009, the Rate Lock fee will increase from $395 to $750 per Rate Lock.

The Bank is making this change as the cost of providing Rate Lock has increased significantly due to the increased market volatility around interest rates. We are increasing this fee to recover the extra costs the bank is incurring.

The Rate Lock option protects customers from the risk of interest movements during the application stage. Rate Lock protects customers from upward movements in the interest rate during the application period for up to 90 days and provides certainty to customers particularly during periods of volatile interest rates."

Cheers
Nikki

HLP Finance Update

Welcome to my new blog,
I will endeavour to keep you informed on whats happening in the market place and what is topical in the finance and mortgage industry, I appreciate your feedback and if there are any areas of interest I am happy to research it for you.
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Best Wishes
Nikki