Australian mortgage market collapses

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Today’s new mortgage data from the Australian Bureau of Statistics (ABS) recorded a big fall as the COVID-19 shutdown took effect:

The next chart plots the time series:

Total new mortgage commitments (excluding refinancings) dived by 11.6% in May, with owner-occupied mortgages falling 10.2% and investor mortgages falling 15.6%.

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Year-on-year, total new mortgage commitments (excluding refinancings) rose by 1.8%, with owner-occupier mortgages rising by 7.3% and investor mortgages collapsing 19.3%:

First home buyer (FHB) mortgages fell 1.9% in April, with their share of total mortgages at 22.3%:

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Pretty much as expected.

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.