Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
Last night Ross Greenwood ran a piece on Mortgage Stress, using the DFA Mortgage Stress Data, which we had recently updated to take account of the latest economic data and surveys. You can watch a video of the report, courtesy of NineMSN. I covered the results of the updated modelling recently, and you can view … Continue reading “Mortgage Stress Coverage on Nine”
The RBA just released their Financial Stability Review for September 2014. They made a number of comments on Housing Lending, which I have collated in a more digestible form here. INVESTMENT LENDING Household credit growth has picked up, almost entirely driven by investor housing credit, which is growing at its fastest pace since late 2007. … Continue reading “RBA On Housing Lending in Financial Stability Review”
We have just received the latest findings from our Small and Medium Business surveys, which shows that many are still running hard to stand still and are unwilling or unable to borrow more. The sector is an important bell-weather for the broader economy, because nearly half of all Australian households are reliant in part or … Continue reading “SME’s Business Grinds On”
The ABS today released their home lending data to July 2014, which held a number of surprises. The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.6%. In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions rose 2.7%. In trend terms, the … Continue reading “Investment Lending Blows Its Stack”
An extract from the latest edition of the DFA report, the Property Imperative, released last week. The Australian Residential Property market is valued at over $5.2 trillion and includes houses, semi-detached dwellings, townhouses, terrace houses, flats, units and apartments. In the past 10 years the total value has more than doubled. It is one of … Continue reading “The Current State Of Play In The Property Market”
The latest report, volume 20 of the Mortgage Industry Report series was released today. As well as over viewing current industry trends, this time we focus on some of the mortgage pricing issues in the light of the FSI interim report, capital and funding. JPM authored their report using DFA research data as detailed in … Continue reading “Latest DFA/JP Morgan Mortgage Industry Report Launched Today”
The RBA has made a supplementary submission to the Financial System Inquiry. Of note, they want to limit the extent to which SMSF’s can borrow, especially for property purchase; acknowledges the potential systemic risk from more housing lending, and the potential impact on business lending; and continues to be skeptical about the potential benefits of … Continue reading “RBA Reinforces Current Policy Settings”
The ABS published their data on Australian Securitisers to June 2014 today. At 30 June 2014, total assets of Australian Securitisers were $131.3b, up $2.5b (2.0%) on 31 March 2014. Still below below the pre-GFC peak of more than $250,000 million. During the June quarter 2014, the rise in total assets was due to an … Continue reading “Latest On Australian Securitisers”
In the Opening Statement to House of Representatives Standing Committee on Economics today, Glenn Stevens made the following points: not only are funding costs low, but banks want to lend and are competing to do so more actively than they have for some years; net worth per household has risen by about $120,000 over the … Continue reading “Where Capital Growth In Property Lives”
The ABS published their Wage Price Index to June 2014. In seasonally adjusted terms, both the Private and Public sector wage price indexes rose 0.6%. The rises in indexes at the industry level (in original terms) ranged from 0.1% for Accommodation and food services, Public administration and safety, and Arts and recreation services to 0.9% … Continue reading “Real Incomes Go Backwards”