Mortgage leading indicator surges

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Via CoreLogic, listings have rebounded but remain very weak:

Mortgages are rebounding strongly:

Though this index does not take account of investor mortgages which remain very weak:

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Conditions for price rises are obviously in place. But unless or until investors return I can’t see it all going boom. There’s just not enough income. We need rehypothecation!

I’d guess that investors will remain sidelined until rents stabilise and that will take a resumption of mass immigration.

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.