The Reserve Bank of Australia (RBA) has released mortgage growth figures for January, which continued to strengthen on the back of owner-occupiers.
Quarterly mortgage growth rose to 1.14% in January – the 6th consecutive monthly increase – and is now experiencing its strongest growth since September 2018 (see next chart).
Owner-occupiers continue to lead the way, recording 1.6% quarterly mortgage growth in January versus 0.27% growth for investors:
Annual mortgage growth has accelerated to 3.6%; although it remains weak in a historical perspective:
The RBA’s credit aggregates series measures the stock of mortgages outstanding. Therefore, it captures:
- New mortgages taken out by households; less
- Repayments of existing mortgages.
Annual mortgage credit growth remains low because borrowers are taking advantage of low interest rates to both take out large volumes of new mortgages as well as repay existing mortgages, with the latter offsetting the former.