Mortgage demand still strong but easing | Tim Lawless

New data was released by the ABS on housing finance commitments which showed an ongoing slowdown in the pace of housing finance growth. 

The slower pace of growth in mortgages is another sign that housing market conditions are starting settle down.

Excluding refinance loans, the number of owner occupier housing finance commitments was only 1.9% higher in August this year compared with August last year.

The annual pace of owner occupier mortgage growth actually peaked in November last year at 16.1%.

Annual growth in number of owner occupier housing finance commitmentsThe slowdown in mortgage demand is also evident across the stronger investment sector of the mortgage market.

Unfortunately, the ABS only publishes investor related housing finance data based on value rather than volume; however the slowdown is still evident.

Growth in the value of investment loans has fallen to 27.6% from a recent high of 40% which was recorded in December last year.

The value of owner occupier loans increased by a much lower 10.3% over the year, down from a recent peak of 20.3% in February this year.

Annual change in the value of housing finance commitments OO v Inv loans

Growth of 27.6% over the past year for investment loans clearly still indicates that investor demand is racing along, however the downwards trend in the rate of growth should provide some reassurance that investor exuberance is slowly starting to dissipate.


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Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit

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