Mortgage activity increases as property market heats up

ust as property prices have been steadily rising during the year, so has home loans activity.

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The value of new home loan commitments rose from $22.85 billion in February to $24.82 billion in August, an increase of 8.6%, according to new data from the Australian Bureau of Statistics.

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This increase in home loans activity has been driven by investors – their loan commitments increased by 13.4%, compared to only 6.2% for owner-occupiers.

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When mortgage borrowing increases, that means more property buyers are entering the market, or prices are increasing (necessitating larger mortgages), or both.