The Australian mortgage market remains red hot according to new data released today by the Australian Bureau of Statistics (ABS).
While the value of new mortgage commitments retraced by a seasonally adjusted 0.4% in February 2021, it was up 48.8% year-on-year and remains only a whisker below all-time highs:
New mortgage commitments remain near record highs.
The growth in new mortgage commitments continues to be driven by owner-occupiers, whose mortgage commitments rose by 55.2% year-on-year, well above the 31.6% rise in investor commitments. The annual growth rates are charted below, with overall growth eclipsing previous peaks:
Annual mortgage growth is running above prior peaks.
Within the owner-occupier space, first home buyer (FHB) demand is booming, rising a whopping 66.8% year-on-year with its share of mortgages at 24.0%:
First home buyer mortgage demand remains strong.
The strong growth in new mortgage commitments is the key reason why Australian property prices are growing so rapidly.
Next week I will compare mortgage growth to price growth across the major capital city markets.
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