What does record low mortgage growth mean for house prices?

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By Leith van Onselen

Following yesterday’s crash in mortgage credit growth to record lows, a reader sent me an email asking me whether this means Australia’s housing bust will accelerate?

The short answer is “no”, unless it also translates into sharper falls in housing finance commitments. I explained why a few months ago, but will do so again below.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.