Lending to households has picked up strongly in the past few months, driven by mortgage refinancing and investor lending. According to the latest Australian Bureau of Statistics figures, the value of new lending commitments for owner occupier dwellings rose 1.9 per cent to A$13.5 billion in August, in seasonally adjusted terms (excluding refinancing). There were increases in all states and territories apart from the Northern Territory. Refinancing of mortgages was up 7.7 per cent to $10.1 billion in August. New investor mortgage commitments rose 5.7 per cent to $4.9 billion in August - the fastest growth in almost three years. The strongest growth was in Queensland (up 10.4 per cent over the month) and Victoria (up 9.5 per cent). Over the 12 months to August, the value of investment mortgage lending fell 13 per cent and owner occupier lending was down 1.7 per cent. Overall, the value of new lending to households rose 3.2 per cent in August, in seasonally adjusted terms. This follows a 4.3 per cent rise in July and 1.8 per cent in June.