Loan Market has seen a 17% year-on-year spike in mortgage commitments for August, the company has stated.

Loan Market COO Dean Rushton has said the company's commitment numbers for August show a 17% improvement on the previous August. Rushton said the broker also saw a 20% uptick in home loan enquiries, a result he said has been buoyed by a protracted period of interest rate stability.

"The RBA's decision to keep the cash rate on hold at 4.75 per cent for the past 10 months should continue to restore consumer confidence and activity. The likelihood of the RBA staying on the sidelines for at least the rest of this year should lead to further improvements in the home finance sector," Rushton commented.

Rushton referred to recent ABS figures which showed a 5% improvement in home loan commitments for July compared to July 2010. While housing finance was down 8% on an annualised basis, Rushton contended the market was "showing signs of life". He pointed to housing finance for Queensland, which he said indicated a slow recovery for the state following natural disasters.

"There has been a rise in activity more recently in Queensland, with commitments for July 2011 just 4% down on the corresponding month in 2010," he said.