The Australian mortgage market tanked in April, according to new data released today by the Australian Bureau of Statistics (ABS).
The total value of new mortgage commitments dived a seasonally adjusted 6.4% in April 2022, but were up 0.3% year-on-year:
Big fall in April.
Owner-occupier commitments tanked 7.3% in April, whereas investor commitments fell 4.8%.
The next chart shows divergence across both categories. Investor mortgage commitments grew by 37.1% in the year to April, versus a 13.8% fall in annual owner-occupier mortgage commitments:
Owner-occupied mortgage demand crashing.
The recent surge in investor mortgage demand continues to crowd-out first home buyers (FHBs). FHB mortgages fell 6.2% in April and was down 29.7% year-on-year. FHB’s mortgage share has also fallen to 15.2% – well below the pandemic peak – as the investor share has rocketed:
Looking ahead, mortgage demand should fall sharply as interest rates rise.
