Australia housing market fight is ‘far from over’

Tough job: Ongoing construction work in Parramatta, Sydney. Households are contending with higher borrowing costs as they negotiate new mortgage contracts in an economy that’s showing signs of resilience. — Reuters

SYDNEY: The Commonwealth Bank of Australia expects the severe competition for home loans that is eroding market share for the country’s biggest lender to endure into next year, piling further pressure on its largest business.

The firm’s decline in total housing loans in July likely extended into August after the bank’s decision to tilt towards shareholder returns. That’s according to Michael Baumann, executive general manager for home buying at Commonwealth Bank.