Aussie mortgage growth tops out

The Reserve Bank of Australia (RBA) has released its private sector credit aggregates data for the month of August.

Quarterly mortgage credit growth was flat at 1.9% after rising for 12 consecutive months – the highest rate of growth since 2015:

Quarterly mortgage growth

Owner-occupiers continue to drive mortgage growth, rising by 2.6% over the quarter versus 0.7% growth for investors:

Quarterly mortgage growth by segment

Meanwhile, annual mortgage growth continues to rise from record low levels. It rose to 6.2% in the year to August 2021 – the highest level since February 2018:

Annual mortgage growth

Again, this growth is being driven by owner-occupiers, whose annual mortgage growth was 8.4% in the year to August 2021, versus only 2.2% growth in investor mortgages:

Annual mortgage growth by segment

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 partly offsetting new mortgage demand.

Unconventional Economist

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