Home loan demand will remain flat for the quarter as household debt growth is expected to be its lowest in three years.
The Dun & Bradstreet Consumer Credit Expectations Survey has found only 18% of households expect to take on more debt for the March quarter.
"Overall, we’ve witnessed a sizeable shift in the spending behaviour of the Australian consumer. There is a greater degree of consideration being applied to each spending decision and a greater focus on spending within our means," Dun & Bradstreet CEO Gareth Jones said.
Along with more discretionary spending habits, consumers are reporting lower levels of financial stress. While Jones said financial stress levels were expected to remain elevated for the first quarter of the year, the proportion of people concerned about their financial position has fallen from 59% in September to 49%.
In light of the light demand for credit, Dun & Bradstreet predicted that applications for new home loans, personal loans, credit cards and credit limit increases would be flat for the quarter.