AUD/USD tilts higher after the hawkish RBA interest rate decision
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Mortgage market shows coast-to-coast property boom
at 12:15 am on May 5, 2021 | 19 comments
Yesterday, the Australian Bureau of Statistics (ABS) released data on new finance commitments, which showed booming growth in both owner-occupied and investor mortgages.
As shown in the next chart, owner-occupied mortgage commitments rose 55.6% in the year to March 2021, whereas investor mortgage commitments rose 54.3%:
Annual growth in both owner-occupied and investor mortgages is running at historical highs.
As regular readers know, the growth in new mortgage commitments has historically correlated very strongly with dwelling value growth. The reason is straightforward: the overwhelming majority of buyers borrow to purchase a home. Thus, when mortgage demand rises, so do property prices.
MacroBusiness
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at 10:20 am on May 4, 2021 | 15 comments
Below is a submission to the inquiry into Australia’s skilled migration program, written by Sustainable Population Australia with my assistance. The submission is a direct rebuke of the Morrison Government’s planned rebooting of Australia’s pre-COVID mass immigration program via giving Australian businesses easier access to migrant workers to overcome purported skills shortages.
Introduction
Sustainable Population Australia (SPA) welcomes this opportunity to make a submission to the Joint Standing Committee’s inquiry into Australia’s skilled migration program.
The comments in this submission have relevance to all the terms of reference (ToR), and have particular relevance to ToR 3 and 4.
Jarrod Reedie
Despite growth rates slowing, dwelling values continue to rise across the country according to CoreLogic’s national home value index, with evidence showing there are less first home buyers in the market for the first time in nearly a year.
Housing values across the country lifted 1.8 percent in April, with the monthly pace of capital gains easing from a 32-year high in March of 2.8 percent.
Despite the slowing of growth conditions, housing values are still rising at a rapid pace, up 6.8 percent over the past three months to be 10.2 percent higher than the COVID low in September last year.
MacroBusiness
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at 10:00 am on May 4, 2021 | 4 comments
Last week, the Australian Bureau of Statistics (ABS) released its export/import price index, which signaled an enormous 11.0% increase in Australia’s terms-of-trade over the March quarter 2021 and a 15.8% increase through the year:
Australia’s terms-of-trade should record a massive rise in Q1 2021.
This surge in the export/import price index was driven by a 18.2% quarterly rise in metalliferous ores and metal scrap prices, caused by strong iron ore demand from China and constrained global supply owing to the tragic dam failure at a Vale mine in Brazil in early 2019.