Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The ABS Housing Finance data for February 2015 was released today. The trend estimate for the total value of dwelling finance commitments excluding alterations and additions rose 0.8%. Owner occupied housing commitments rose 1.0% and investment housing commitments rose 0.4%. This is the first time growth in owner occupied loans has exceeded investment loans for … Continue reading “Is The Housing Finance Worm Turning?”
DFA research was featured in a recent The Advisor article. Brokers have the mortgage market in the palms of their hands – for now – but will the tech-savvy borrowers of the future always need their help? The Adviser reports. Ask any broker if they can ever see a future in which borrowers go online … Continue reading “Digital Disruption”
DFA recently highlighted the rise of the bank of Mum and Dad. In The conversation, there is an article highlighting some of the potential risks, especially with formal bank guarantees. Ask a parent how far they would go to support the financial aspirations of their children, and chances are they will say: “Yes, if I … Continue reading “The Problems with Relying on the Bank of Mum and Dad”
Today we round out the latest survey results, by updating our other segments. The property as investment bug continues to spread. First, those looking to trade up. Property investment has now overtaken the desire for more space as the main driver to transact. We also see that life style changes and purchase due to job … Continue reading “Latest DFA Survey – Other Segments”
We just updated the DFA household surveys, with data to end November, and there are some interesting transitions in play, which taken together with potential action on foreign buyers, suggests we will see property momentum easing in the next few months. This actually may be a “get out of jail card” for the RBA and … Continue reading “Property Momentum On The Slide”
The report on foreign property buyers is out, and the recommendations are significant, and the Foreign Investment Review Board (FIRB) criticised. The current framework relating to foreign purchases of Australian housing will be retained to encourage investment in new dwellings and increase housing supply. But there are a bunch of recommendations, which cover the bases … Continue reading “Foreign Property Purchase Rules To Be Enforced”
Today, in a speech by Chris Aylmer, Head of Domestic Markets Department, RBA, we got an interesting summary of recent developments in the market. This is important, because as at June, the Bank held about $25 billion of these assets under repo as part of their liquidity management operations. In addition, at the same forum, … Continue reading “Australian Securitisation Under The Microscope”
The RBA, in today’s monetary statement discusses the relationship between loan growth and house prices. They conclude that factors including fear of unemployment, low supply, high loan to income ratios and stamp duty are all contributing factors, as well as price hikes themselves. Indicators of conditions in the established housing market, such as housing prices, … Continue reading “Why Mortgage Loans Are Growing Slower Than House Prices”
According to APRA, interest only loans continue to grow as a proportion of all home loans. Recently Moodys warned about the increased risks which may stem from this type of loan. So the question is, should we be concerned, bearing in mind the recent RBA comments “indicative of speculative demand motivating a rising share of … Continue reading “Interest Only Loans – The UK Experience”
The ABS released their data series for August covering the entire lending spectrum (the housing details were released previously). The total value of owner occupied housing commitments excluding alterations and additions fell 0.1% in trend terms, and the seasonally adjusted series fell 2.0%. The trend series for the value of total personal finance commitments rose … Continue reading “August Lending Data Released”