CommSec questioned whether Australians were accepting that there was a recession.

“Aussies are embracing housing like never before,” CommSec said.

“Not only have home loans posted record gains in July and August, but the value of the loans has never been higher.”

The average mortgage size in Queensland was now $426,000, a rise of 6 per cent in a year. Nationally, mortgages average $504,000, up 8.2 per cent. NSW tops the nation with an average mortgage of $638,000, followed by Victoria with $524,000, the ACT at $515,000 and then Queensland.

The level of new loans is a remarkable turnaround from May when they dropped more than 10 per cent.

“This is not your typical recession. The Reserve Bank may have identified a litany of risks but none are being converted into events. In fact, economic data continues to surprise on the upside,” CommSec said.

“Home loans are a leading indicator for the housing sector and stronger activity in the sector will have a positive knock-on effects across the country.

“To take on a new loan, Aussies must have a degree of job security and a generally confident outlook.”

According to the ABS data, analysed by CommSec, the value of home loans rose sharply in August. Owner-occupier loans jumped 13.6 per cent to a record $16.3 billion.

The value of first home buyer loan commitments accounted for 30.8 per cent of all owner-occupier commitments, a 10.5 year high.

The confidence in the market is likely to have a flow-on effect into whitegoods and furnishings.

CommSec said the main concerns now for the housing market was the impact from the fall in migration as well as high unemployment.

The Reserve Bank last week issued a warning saying the global recovery would take time and although the Australian economy was well placed the risks to the financial system remained elevated.