Mortgage lending growth fell to 34-year low in 2011: RBA
Mortgage lending remains in the doldrums, with the latest RBA figures showing only a 0.4% increase in housing credit provided during December on a seasonally adjusted basis.
The December result matched the 0.4% increase in housing credit provided in November.
For the calendar year, mortgage lending is up 5.4% compared with annual growth of 7.2% recorded in December 2010.
This is the lowest growth since records began in 1977. The previous lowest annualised growth for a calendar year was 7.2% recorded in December 1982.
Owner-occupier lending increased by 0.4% in December to be up 5.7% for the year, while loans to property investors increased by 0.3% to be up 4.8% for the year.
On an annualised basis, mortgage lending declined every month of 2011.
Economist and former Gillard government advisor Stephen Koukoulas tweeted: “Housing credit growth slumps to new 34 year low (since records were kept dating back to 1977)... the disappointing news continues.”
Mortgage lending growth in 2011 (monthly and annual growth in %)
Jan-2011 | 0.6 | 7.2 |
Feb-2011 | 0.5 | 6.9 |
Mar-2011 | 0.4 | 6.5 |
Apr-2011 | 0.4 | 6.4 |
May-2011 | 0.5 | 6.2 |
Jun-2011 | 0.4 | 6.1 |
Jul-2011 | 0.5 | 6.0 |
Aug-2011 | 0.4 | 5.9 |
Sep-2011 | 0.5 | 5.8 |
Oct-2011 | 0.4 | 5.7 |
Nov-2011 | 0.4 | 5.6 |
Dec-2011 | 0.4 | 5.4 |
Source: RBA
Mortgage lending has not grown by more than 1% per month since June 2007, when it increased by 1.3%.
Since then mortgage lending growth has varied between 0.4% and 0.8% per month.
Business lending rose by 0.3% over December to be up 1.4% for the year while personal credit declined by 0.1% over December to down 1% for the year.
Total credit provided to the private sector by financial intermediaries rose by 0.3% over December 2011 to be up 3.5% for the year.