Mortgage demand remains high – RBA
Demand for mortgages in Australia continues to rise in the three months to April 2021, according to the latest market update from the Reserve Bank of Australia.
Quarterly mortgage credit growth reached 1.5% in April, the highest rate since September 2017. It was the ninth consecutive month that quarterly mortgage growth increased.
According to the RBA, the gains in mortgage demand were driven by existing mortgage holders who took advantage of historically low interest rates. Segment activity offset the slowdown in the acceleration of new mortgage commitments.
The RBA report showed that homeowners remained the main driver of mortgage growth. The segment’s demand increased by 1.8%.
Meanwhile, investor demand appears to be accelerating. Over the same period, investor mortgage activity increased 0.8%.
On an annual basis, aggregate demand for mortgages continued to increase from historically low levels. In the year up to April 2021, demand for home loans reached 4.4%, the highest level since January 2019.
Homeowners drove annual growth with segment demand up 6.1%. Mortgage lending growth in the investor segment, however, was moderate at 0.55%.