![\"A](\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/b98a642012d0fce6a9444e9130146689164adf6f55104050057e37b657e89c97\/lightyear_networkapi\/resizefit_w960%3Bquality_80%3Bformat_webp\/https%3A%2F%2Fmedia.zenfs.com%2Fen%2Faap.com.au%2F6b9acb276f4b08149bff461dd4e1df83.jpg\")
<\/a> The decision to lift the cash rate to an 18-year high is the latest blow to households. (Joanna Kordina\/AAP PHOTOS<\/a>) <\/p>\nThe Australian Bureau of Statistics is expected to reveal on Wednesday that the decline in new home loan numbers accelerated in the September quarter from a 5.4 per cent drop in the three months ended June. <\/p>\n
Economist at ANZ bank have tipped a seven per cent drop in overall lending. <\/p>\n
“Housing prices and sales volumes both declined in Q3, which will weigh on new housing lending,” ANZ economist Madeline Dunk said. <\/p>\n
“The monthly credit data (which is a stock measure and is slower moving) suggests a sharp pullback in investor demand, which is likely to show up more clearly in the lending release.” <\/p>\n
While owner-occupier lending has edged lower, their share of the loan market has increased as investors have deserted the market in droves. <\/p>\n
RBA figures showed the largest fall in investor loans on record, although lending for newly-built dwellings remained relatively resilient. <\/p>\n
Reserve Bank governor Michele Bullock noted investors tend to exaggerate housing cycles but the movement had been particularly pronounced this time because of the government’s curbs to property investor tax breaks in the May budget. <\/p>\n
As home prices continue to decline, they are expected to weigh on spending through what is known as the wealth effect. <\/p>\n
AMP chief economist Shane Oliver projects a 15 per cent fall in prices, from peak to trough, which will knock around 1.5 per cent off consumer spending as it leaves home owners feeling poorer. <\/p>\n
But household spending has so far held up. <\/p>\n
ABS data last week showed spending was up 6.8 per cent over the year. Even accounting for higher prices, spending was still up a robust 3.2 per cent in volume terms. <\/p>\n That’s despite Westpac consumer confidence remaining in deeply pessimistic territory, where it is expected to remain when the index is updated on Tuesday. <\/p>\n NAB’s business sentiment survey is likely to show employer spirits in a similarly dour vein. <\/p>\n But with oil prices turning lower following the Democrats’ sweeping victory in the US midterms and markets predicting interest rates have hit their peak, conditions may be about to bottom out. <\/p>\n Eyes will therefore be on RBA chief economist Sarah Hunter when she addresses the UBS Australasia Conference in Sydney on Monday for any indication of where rates are going next. <\/p>\n Former banker Marnie Baker will deliver her first speech as RBA board member to the Australian Retail Credit Association on Thursday, after a review of the central bank required board members to deliver public speeches to boost transparency and communication. <\/p>\n Meanwhile, fears appear to have evaporated among Wall Street investors that a Democratic-led Congress would result in tougher AI regulation even amid fresh US interest-rate concerns. <\/p>\n The S&P \u200c500 advanced 23 points, \u2060or 0.32 per cent, to end the session at 7,376.86. The Nasdaq gained 264 points to 24,579.43 and the \u200bDow Jones Industrial Average declined 0.46 per cent, to 51,285.73. <\/p>\n Australian share futures climbed 29 points, or 0.32 per cent, to 22,711. <\/p>\n The S&P\/ASX200 fell 44.3 points on Friday, down 0.49 per cent, to 9020.8, as the broader All Ordinaries lost 60.5 points, or 0.66 per cent, to 9144.7. <\/p>\n","protected":false},"excerpt":{"rendered":"Home loan figures, business sentiment and a speech by the Reserve Bank’s chief economist loom, as the latest…\n","protected":false},"author":2,"featured_media":956605,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[1778,64,63,99,174,164,186,10346,5476,21130,10347,1603,21131,8792,184,5482,1003,1793,5473,10348,10349,2004,21132,4961,21133],"class_list":["post-956604","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-401k","tag-au","tag-australia","tag-business","tag-business-news","tag-economy","tag-finance","tag-financial-information","tag-investing","tag-investment-tools","tag-investor","tag-market-news","tag-mortgage","tag-mutual-funds","tag-personal-finance","tag-quote","tag-real-estate","tag-retirement","tag-stock","tag-stock-research","tag-stock-valuation","tag-stocks","tag-suze-orman","tag-tax","tag-track-portfolio"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/956604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=956604"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/956604\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/956605"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=956604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=956604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=956604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a> Investors have deserted the home loan market in droves. (Dan Himbrechts\/AAP PHOTOS<\/a>) <\/p>\n
<\/a> AI stocks have rebounded on Wall Street, recovering some of their two days of sell-offs. (AP PHOTO<\/a>) <\/p>\n