Mortgage growth now a poor indicator for house prices

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Yesterday, we received two contradictory indicators on the Australian housing market.

First, Australian dwelling values rocketed 1.1% in September, according to CoreLogic, with quarterly values surging by 2.3%:

On the same day, the RBA’s credit aggregates were released, which showed that both quarterly and annual mortgage growth crashed to the lowest level on record in August:

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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.