Posts Tagged ‘slow’

A report by JP Morgan banks says that after a 20 year run of double digit growth, the home loan market is poised to slow, as Aussies increasingly move away from mortgages. This material shift in sentiment among home buyers over the past two years is being driven by high interest rates and living costs.

JP Morgan banks analyst Scott Manning, co-author of the report, said lenders could no longer expect the strong growth in home lending that had characterised the market since the early 1990s.

Mr Manning said consumers were increasingly debt averse and thrifty – one of a series of factors foreshadowing an era of lower profit growth for lenders.

“Overall, the major banks and investors alike will have to get used to a future where the domestic mortgage market will not constantly deliver the double-digit rates of credit growth enjoyed over the previous two decades.”