The Reserve Bank of Australia (RBA) has released its private sector credit aggregates data for the month of May.
Quarterly mortgage credit growth continued to firm, rising for the 10th consecutive month to 1.6% – the highest rate of growth since August 2017:
Owner-occupiers continue to drive mortgage growth, rising by 2.0% over the quarter versus 1.0% growth for investors. However, investor mortgage growth is clearly picking up steam:
Meanwhile, annual mortgage growth continues to rise from record low levels. It rose to 4.8% in the year to May 2021 – the highest level since November 2018:
Again, this growth is being driven by owner-occupiers, whose annual mortgage growth was 6.6% in the year to May 2021, versus only 1.6% growth in investor mortgages:
The acceleration in mortgage growth is obviously far slower than the acceleration in new mortgage commitments. This is because existing mortgage holders are taking advantage of record low interest rates to repay debt, which is mostly offsetting new mortgage demand.