Veda’s latest Quarterly Consumer Credit Demand Index for the December Quarter shows the growth rate of mortgage applications has eased consistently in the last 12 months but is still climbing at 2.8% nationally.
The Index is a measure of credit card applications and personal loans and the results are a useful indication of future behaviour in consumer spending and retail sales.
Veda General Manager of Consumer Risk Angus Luffman says the results show mortgage demands are slowing down across all states, with WA and SA declining over consecutive quarters and also a continual ease on the east coast.
“Mortgage application growth has slowed for four consecutive quarters and is down sharply from the peak of demand we saw 12 months ago,” Mr Luffman said.
“A slowdown in growth, and as we see in NT, SA and WA, a contraction in demand, is a lead indicator on the housing market and suggests a moderation in housing turnover and price growth over the coming months.”
Personal loan demands have fallen in their fifth quarter of negative growth, partly due to decreasing car sales, with the largest contractions in NT and WA at -12.4% and 11.2%, respectively.
The Index shows credit card applications have gone up consistently for almost two years, up 8.3% in the December quarter 2014 compared with December quarter and is the longest consistent upward trend since the Index’s first year in 2003.