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.