Mortgage commitments go BOOM!

The Australian Bureau of Statistics (ABS) has released housing finance data for September which revealed another strong lift, driven by both owner-occupiers and investors:

The below chart plots the time series:

Total new mortgage commitments (excluding refinancings) surged by 5.9% in September, with owner-occupied mortgages rising 6.0% and investor mortgages rising 5.2%.

Year-on-year, total new mortgage commitments (excluding refinancings) rose by 25.5%, with owner-occupier mortgages surging by 33.8% and investor mortgages rising 4.2%:

First home buyer (FHB) mortgages rose by 5.6% in September, with their share of total mortgages at 23.5% – around the highest level since the GFC:

There’s no denying that this data is very bullish for property prices and helps to explain the resurgence taking place outside of Victoria.

It will be interesting to see whether it lasts through 2021 given the forecast collapse in immigration:

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