Mortgage demand has started to level recently
- The RP Data Mortgage Index (RMI) shows that mortgage demand has begun to level over the past couple of months.
- ABS housing finance data shows a similar trend with the market largely driven by upgraders and investors.
- Population growth is winding down but remains high on an historic basis.
- Dwelling approvals have shifted much higher over the past year and are at their highest ever level on an annual basis.
- With population growth slowing and building approvals remaining high (despite the recent fall) we may see a better relationship between approvals and population growth over the coming years.
- Consumer sentiment has been weak since the Federal Budget but is slowly increasing.
- The unemployment rate has hit 6.4% with employment growth quite slow.
- Mortgage rates remain low with banks competing hard for their share of the home loan business.