Interest rate rise fails to deter housing demand

From: AAP - October 10, 2007

THE August interest rate rise failed to douse demand for home loans with 64,365 people securing finance for owner-occupied housing during that month which was more than in July.
The Australian Bureau of Statistics said today the number of owner-occupied home loans grew by a seasonally adjusted 1.6 per cent in August, totalling $15,315 billion.
Economists had expected a 1.1 per cent increase in the number of home loans in August.
They say strong employment growth is providing jobs security and giving consumers confidence into taking out loans, even though the cost of repayments are rising.
The Reserve Bank of Australia raised interest rates in August to curb a renewed spike in inflation.
Economists say there is a risk the central bank could raise rates again next month if inflation data on October 24 shows a further build up in price pressures.