There’s a little bust underway in mortgage issuance

CoreLogic leading mortgage index is a pretty good way to track what’s coming in ABS owner-occupier data. Suddenly, it ain’t look so crash hot:

The index level is still high but the recent tumble is quite substantial and steep relative to past winter pullbacks. This may reflect lockdowns or just be a part of the natural falling off of activity as prices reach nosebleed levels.

Remember, however, that this is only owner-occupiers so it does not augur any kind of price bust when investors are starting to fill the breach.

Especially so when inventory remains so low:

This data still signals strong price growth but the handoff from owner-occupiers to investors also brings forward macroprudential tightening which appears inevitable now before or after the election.

Full report.

Houses and Holes
Latest posts by Houses and Holes (see all)

Comments are hidden for Membership Subscribers only.