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2026.08.1401:30:00UTC+00Australia Home Loan Slide Eases in Q2 2026, Signalling Tentative Stabilisation

Australia’s home loan market showed signs of stabilisation in the second quarter of 2026, with the rate of decline slowing compared with the start of the year. According to data updated on 14 August 2026, home loans fell by 1.9% in Q2 on a month-over-month basis, moderating from a sharper 4.3% drop recorded in the first quarter of 2026.

The figures indicate that while housing finance demand remains weak, the pace of contraction is easing. The “actual” measure compares the change in the second quarter to the previous month, while the “previous” figure reflects the first quarter’s change relative to the month before it. The improvement from -4.3% to -1.9% suggests that pressure on the housing credit market may be gradually abating, although home lending activity is still below prior-period levels.

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