Why the CBA (ASX:CBA) share price pulled back from record highs in June
Why the CBA (ASX:CBA) share price pulled back from record highs in June
The banking giant scaled new heights in June but ended the month back under the $100 per share mark.
Kerry Sun is a site writer at The Motley Fool Australia. He holds a Bachelor of Commerce, majoring in Finance and Economics. Kerry started his investing and trading journey back in 2014, riding the highs of A2 Milk and lows of Slater and Gordon. Kerry takes a techno-fundamental view on stocks, understanding the importance of sound fundamentals supported by a strong technical chart. Current sectors of interest include US sports betting, rare earths, lithium and BNPL.
A file photo of houses in Melbourne - AAP
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The amount of outstanding mortgages in Australia grew by the fastest monthly pace in four years.
But economists doubt financial regulators will be too concerned at this stage with investor loans still relatively subdued.
New figures from the Reserve Bank of Australia showed housing credit grew by 0.6 per cent in May, the largest rise since June 2017.
Annual growth now stands at 4.8 per cent, its highest since 2018.
Owner-occupier loans rose 0.7 per cent in the month to 6.6 per cent, also the highest year rate since 2018.
However, growth in loans to housing investors remained relatively modest, rising 0.4 per cent in May to 1.6 per cent.
Donât let FOMO railroad your property investment strategy
Despite the heat in the housing market, a pragmatic long-term approach will withstand shifts in personal, market and social circumstances.
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There isnât a lot of room for hesitancy in the residential property market. Tax incentives, low interest rates and the lack of supply are culminating to drive frenzied demand and surging prices.
In the 12 months to the end of May, 218 areas joined the million-dollar club. Thereâs no sign of a significant slowdown, with CoreLogicâs national home value index up 2.2 per cent over May, following a 2.8 per cent rise in March â the fastest rate of appreciation since 1988.
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Moody’s with the note:
As economic recoveries proceed at different speeds and stages around the globe, there is rising interest about when normalisation of monetary policy will begin. Many central banks have had interest rates sitting at the lower bound since providing unprecedented monetary support at the height of the global pandemic. Normalisation of the U.S. federal funds rate could begin in early 2023, while tapering of the Federal Reserve’s quantitative easing could begin in January. This will likely prompt some emerging markets, including in Asia, to follow suit. Indeed, Mexico’s central bank surprised on Thursday with a rate hike, encouraged by high inflation. Market pricing suggests further increases are coming in Mexico in the near term.
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