Borrowing up 19.4% since early 2023

Mortgage activity is continuing to go from strength to strength, with consumers signing up for $27.64 billion of new home loans in March, according to the latest data from the Australian Bureau of Statistics.

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That was not only 3.1% higher than the month before, it was also 19.4% higher than the bottom of the current cycle, in January 2023.

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During that time, the size of the average owner-occupier loan has increased by only 1.1%, to $608,000.

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So that suggests this large increase in borrowing is being driven mainly by an increase in the number of new loans, rather than an increase in the size of those loans.

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That, in turn, tells you there are a lot more active buyers in the market, which is why prices are rising in many parts of Australia.