The flow of credit for housing is now running $6.2 billion per month faster than it was a year ago, when the global financial crisis was hitting hardest.

Approvals for housing finance hit $23.847 billion per month in September, a level exceeded only on one previous occasion, in June 2007.

That was the month the sub-prime loans crisis really hit the headlines with the failure of two hedge funds run by Bear Stearns, which subsequently dragged the US investment bank to the brink of collapse the March, when it was snapped up for a pittance by JPMorgan Chase.

The low point for housing lending in Australia was reached in September 2008, when the better-known failure of Lehman Brothers pushed the world’s financial system to the brink.

In that month, the value of housing finance approved dropped to $17.616 billion, its lowest for two years.
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