Investor mortgage demand hits all-time high

The Australian mortgage market rebounded in November, according to new data released today by the Australian Bureau of Statistics (ABS).

The total value of new mortgage commitments rose by a seasonally adjusted 6.3% in November 2021 to be up 33.2% year-on-year:

Investor mortgage demand has finally surpassed its 2015 peak. They are also growing at turbo-charged rates, up 86.9% year-on-year versus 17.2% growth for owner-occupiers:

Investors continues to crowd-out first home buyers (FHBs). While FHB mortgages rebounded 3.7% in November, their share of new mortgage commitments retraced further to 17.1%. FHB demand was also down 6.0% year-on-year in November:

The strong growth in new mortgage commitments is the key reason why Australian property prices have grown so rapidly.

Accordingly, slowing mortgage growth should mean slower price growth.

Unconventional Economist
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