Mortgages are not crashing

Monday 11 May 2020

Via CoreLogic’s leading indicators. Listings are rooted:

Although mortgages were falling they are not crashing:

The index only tracks owner-occupier mortgages so can’t be used as a leading indicator for prices, especially so when investors are getting canned by falling rents. Current levels are roughly the same as last year which were suppressed by the HayneRC.

But it is a sign that owner-occupier demand has not cratered and that is some support. Full report.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.