Mortgage growth still points down for property prices

This week’s mortgage commitment data from the Australian Bureau of Statistics (ABS) revealed a record bounce in mortgage demand, with new commitments (excluding refinancings) surging by 8.9% in July and by 11.8% year-on-year:

The next chart plots the rolling annual change in the value of mortgage commitments (excluding refinancings) against CoreLogic’s 5-city dwelling value growth to August. Since the ABS’ trend series has been suspended, the mortgage data has been smoothed using a three month moving average to reduce volatility:

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