The Australian mortgage market rebounded in March, 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 1.6% in March 2022 to be up 11.1% year-on-year:
Owner-occupier commitments rose only 0.9% in March, whereas investor commitments rose 2.9%.
The next chart shows massive divergence across both categories. Investor mortgage commitments grew by 48.4% in the year to March, versus a 2.2% decline in annual owner-occupier mortgage commitments:
The recent surge in investor mortgage demand continues to crowd-out first home buyers (FHBs). Although FHB mortgages rebounded 5.9% in March it was down 25.2% year-on-year. FHB’s mortgage share has also fallen to 15.3% – well below the pandemic peak – as the investor share has rocketed:
Obviously, mortgage demand will fall going forward as interest rates rise.
