Free Trial

Key Support Remains Exposed


Pullback Extends, But Still Looks Corrective in Nature


FED Remains in Play Post-NFP/ISM Data

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Rate Hikes Impacting Home Loans  But Above Pre-Covid Levels


The lending indicators for September were particularly weak, missing expectations across the board, as substantial rate hikes impact the mortgage market. The value of home loans fell 8.2% m/m after -3.4% in August. But despite recent falls in new loans, they are still above pre-pandemic levels, and so not yet a reason for the RBA to pause.

  • New lending to owner-occupiers fell sharply by 9.3% m/m to be down 19.9% y/y, the lowest annual rate in 12 years. Investor commitments fell 6% m/m and -15.3% y/y. 3-month momentum in home loans is extremely weak in both sectors and deteriorated further in September.
  • But lending remains above pre-Covid levels with loan commitments to owner-occupiers 23.2% and to investors 59.8% above February 2020. The housing boom during Covid is not yet close to being unwound.
  • First home buyers are staying away from the market in the face of rising rates as new loans fell 6.8% m/m to be down 26% y/y. It is also worth noting that first home buyer loans are only 0.7% above the pre-pandemic level of February 2020.
  • New home loan commitments fell across states.
  • The value of personal finance lending was down 5.2% m/m with lending for vehicles and investment especially weak.

Australia Home loan ex refi commitments %

Source: MNI - Market News/ABS

To read the full story

Why Subscribe to

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.