The ABS has just released housing finance data for the month of May, which registered a -1.2% fall in the number of owner-occupied housing finance commitments, well below the consensus forecast of a 0.8% rise.
Arguably, the most important figure in the release is the number of owner-occupied housing finance commitments excluding refinancings, which registered an -0.8% fall over the month and remains some -14% below the five-year moving average level:
When viewed along side the RBA credit aggregates data for May, which registered the equal second weakest housing credit growth in the series’ 35-year history, it is clear that Australian’s demand for mortgage credit remains highly subdued, suggesting home prices nationally will continue to soften.
Twitter: Leith van Onselen. Leith is the Chief Economist of Macro Investor, Australia’s independent investment newsletter covering trades, stocks, property and yield. Click for a free 21 day trial.
