“Previously, these borrowers weren’t paying off the principal on their mortgage, now that they are, coupled with far less investor mortgage demand, they are paying back their principal and fewer new investor mortgage applications are occurring which in-turn contributes to the ongoing slowing of investor credit growth.”
The December reading for credit growth in housing was not that much better at 0.3 per cent.
Official figures from the ABS earlier this month showed the number of new first home buyer loans slumped 9.6 per cent to 8476 in December and new loans to investors dropped 4.6 per cent to $4.9 billion from $5.1 billion in seasonally adjusted terms from the previous month.
The RBA’s latest figures show that personal lending was down -0.6 per cent in January from -0.4 per cent in December while credit growth in business stayed steady at 0.3 per cent.
from Credence news https://ift.tt/2Xtkd4n
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