Mortgage applications at Commonwealth Bank, Westpac and ANZ have fallen at least
12% since the government’s May budget paved the way to remove investor tax
breaks, reflecting a cooling Australian housing market. The weakness has pushed
bank shares lower and highlighted pressure on profitability. Earlier rises in
borrowing costs had already damped demand and prices in Sydney and Melbourne are
retreating. Commonwealth Bank CEO Matt Comyn said the bank has not yet seen the
weakness spill over into household spending or broader activity. With the Middle
East conflict lifting inflation and some firms remaining cautious, housing
credit growth is expected to slow further next year.
