Mortgage applications fall by 12 per cent
Data from Equifax for the June 2019 quarter has found that mortgage applications have fallen by 11.9 per cent, representing the ninth consecutive quarter of decline.
In its latest Quarterly Consumer Credit Demand Index, overall consumer credit applications down 5.9 per cent.
However, the data from Equifax also showed that the rate of decline in consumer credit applications appears to be easing compared to the March 2019 quarter (-7.1 per cent).
Credit card applications declined (-10.4 per cent) in the June quarter vs the same time last year.
According to Equifax executive general manager of customer and solutions Moses Samaha, the decline in credit card applications has been driven by a rise in Buy Now Pay Later services, as well as changes to ASIC regulations and government restrictions on credit card marketing.
On the mortgage application front, Samaha said that while mortgage demand declined across all major states the rate of decline appears to be easing.
In NSW, for example, the first quarter of this year showed a - 16.6 per cent drop, but that has eased to -12.6 per cent in this second quarter.
“If we look at the volume of mortgage enquiries today compared to 2017, there is still a way to go. Second-quarter 2019 enquiry volumes are 82 per cent of what they were for the same quarter two years ago.
Personal loan applications also softened, falling 2.0 per cent (vs June quarter 2018).
Equifax Consumer Credit Demand Index - June 2019 Quarter