January peak in mortgage growth

The mortgage market kicked ahead in January, with the Australian Bureau of Statistics reporting new housing finance commitments grew at their fastest rate since lending activity started picking up in the middle of last year.

The value of new mortgage commitments rose by 4.6 per cent in January, compared with the previous month.

The A$20.7 billion of new mortgage commitments in January was 23.3 per cent higher than a year earlier, in seasonally adjusted terms.

Growth continues to be driven by home buyers. The value of new owner occupier mortgage commitments grew 5 per cent in January - the eighth consecutive month of growth.

The value of new lending to residential property investors rose 3.6 per cent. New lending to investors has grown for four consecutive months.

The value of new lending to first home buyers grew by 4.8 per cent. The rate of growth in new lending to first home buyers has slowed from 6.2 per cent in December, perhaps reflecting the re-emergence of affordability issues as dwelling prices pick up.