Posts Tagged ‘home loans’

Another biased media report: home loans on the rise?

Tuesday, July 13th, 2010

In our report, How To Foolproof Yourself Against Salesmen & Media Bias, we wrote about how the media uses headlines to slip in their bias.

Well, here is a great example from this article in the Sydney Morning Herald (SMH)- Home loans on the rise:

The number of home loans issued to borrowers have marked their first rise in eight months are buyers looked beyond higher interest rates to wade back into the market. In a sign of caution, though, the size of a typical loan shrank.

In an another article from the SMH- Home loans up for first time in eight months:

A WEAK spot in the property market is showing tentative signs of recovery, after a surprise bounce in new lending to home buyers.

The headlines from the Daily Telegraph isn?t much better.

Despite the positive spin in these headlines, there?s a little detail that caught our eye. What is it?

This article is not free. A payment of 0.97 USD is required to access this article. For those who have already donated to this site, you will receive an email with the full article.

Sign in to see the content if you already bought it (sign-in instructions will be sent via email after payment).

Interesting chart: Number of home loans vs Size of home loans

Thursday, March 11th, 2010

Today, we will show you a few interesting charts.

The first chart is this:

Number of loans vs Size of loans (Total)

Number of loans vs Size of loans (Total)

It shows the total number of home loans and the size of loans. As you can see, from September 2009, the number of loans crashed, but the size of loans still remained in a steady up-trend.

Now, let us break it up the numbers into First-Home-Buyer (FHB) and non-FHB:

Number of loans vs Size of loans (FHB)

Number of loans vs Size of loans (FHB)

As you can see, since the doubling of the First-Home-Owner-Grant (FHOG), the number of FHB home loans surged to a record high. But still, the size of loans still remained in a steady up-trend

Number of loan vs Size of loan (Non-FHB)

Number of loan vs Size of loan (Non-FHB)

For the non-FHB, it is clear that the total number of loans remained in a down-trend despite the surge in 2009.

There is a common characteristic among these 3 charts: despite the number of loans declining, the size of loans keeps on growing.

What do you think this means?