Over the second-half of the 2015, investor mortgage demand faded, largely due to regulatory changes, but owner-occupier new loans picked up to offset the slowdown, according to housing and lending finance data for December 2015 reported by Cameron Kusher of CoreLogic.

The total value of housing finance commitments was recorded at $33.5 billion in December. The data shows a sharp slowdown in investment lending that is almost perfectly compensated by a rise in owner occupier lending, however it is likely that a proportion investor loans are now being reclassified as owner occupier loans as home owners seek to get best mortgage rates (investor mortgages have been attracting a mortgage rate premium since August 2015) which is contributing to the swing.

Now the question becomes: Where will mortgage activity likely to trend in 2016? Low interest rates are likely to persist, however, borrowers won’t be able to access mortgage finance as easily as they have over recent years, particularly investors. We would expect further growth in mortgage demand but that rate of growth is likely to slow.

Read more >