How can house prices rebound while mortgage growth crashes?

Tuesday 3 September 2019

Friday’s mortgage credit data from the Reserve Bank of Australia (RBA) revealed record low mortgage growth on both a quarterly and annual basis (see below charts).

Following this post, several readers questioned how house prices can reportedly be rising when mortgage growth is crashing. Below is a sample of these comments:

AngryMan

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.