Does record low mortgage growth matter for house prices?

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By Leith van Onselen

Following yesterday’s post charting Australia’s housing finance data against house prices across Australia’s major capitals, below is a chart comparing mortgage credit growth – as reported monthly by the RBA – against dwelling values nationally, since I frequently get requests for this from readers:

As you can see, unlike the ABS’ housing finance series (shown below), there is a weak correlation between the growth in outstanding mortgage credit and house prices.

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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.