Mortgage demand easing

by Adam Smith10 Jul 2014
Mortgage demand has eased, though growth in the sector remains solid.

New data from Veda shows mortgage enquiries were strong in the June quarter, up 6.1% from the same quarter last year. But demand eased somewhat after the March quarter saw an 11% increase on the previous corresponding period.

Veda said the figures were a good lead indicator of future home buyer demand and housing turnover.

"The growth in the stock of housing crredit has continued to slowly pick up since early 2013, consistent with the earlier strength seen in mortgage enquiries," Veda general manager of consumer risk Angus Luffman said. "While it remains healthy in the main eastern seaboard states, with the rate of growth in mortgage applications now slowing, there are continuing indications that the pace of growth in the housing market is set to cool in the months ahead."

While all states saw the growth rate of mortgage demand taper, mortgage enquiries were strongest in NSW and Tasmania, while SA, WA, the NT and the ACT all saw declines in mortgage enquiries for the quarter.