July a blip on strong new home lending figures: HIA

BANK lending for new homes was still "healthy" at the start of the new financial year, despite a 0.8% fall in July, the housing industry says.

Figures released by the ABS on Tuesday showed the three-month trend on new home lending to July was still up 1.9%, and up 8.8% compared with the same period last year.

Housing Industry Association economist Diwa Hopkins said the data showed the current credit conditions were having the "desired impact", but that low interest rates were the key element to the positive figures.