Investors are driving growth in the home loan market, while owner occupier activity is subdued and the heat has gone out of the refinancing market. According to the latest ABS lending data, the value of new housing loan commitments rose 0.6 per cent in September, compared with the previous month. This follows a rise of 2.2 per cent in August. The A$25 billion of new lending was down 4.7 per cent over the 12 months to September. The value of new lending to owner occupiers was down 0.1 per cent month-on-month and down 8.4 per cent over 12 months. New lending to investors was up 2 per cent month-on-month and up 3 per cent over 12 months. The value of external refinancing fell 7.8 per cent to $18.5 billion, the second consecutive monthly fall. The value of external refinancing was up 1.5 per cent over 12 months. The value of new lending to first home buyers rose 1.4 per cent month-on-month to $4.6 billion and was up 3.1 per cent over 12 months. Average loan size rose from $585,000 in August to $599,000 in September. The latest Reserve Bank data show that lenders’ mortgage balances grew by 0.4 per cent in September and by 4.2 per cent over the 12 months to September. The annual growth rate is the lowest since March 2021. Owner occupier loan balances were up 0.4 per cent month-on-month and 4.9 per cent over 12 months. Investor loan balances rose 0.2 per cent month-on-month and rose 2.9 per cent over 12 months. APRA figures for September show that with system growth at 4 per cent annualised over the three months to September, CBA’s mortgage portfolio shrank by 3 per cent annualised, while ANZ’s grew 7.8 per cent, NAB’s 2.9 per cent and Westpac’s 5.8 per cent. Judo Bank continues to report very strong growth, at 32.9 per cent annualised over the three months to September. Macquarie Bank’s book grew 15.7 per cent annualised over the same period.