The RBA has just released its financial aggregates data for June and – you’ve guessed it – there’s was another significant increase in credit growth to housing investors.
From a month earlier, borrowing increased by $5.814 billion, the largest rise since June 2013, taking annual growth in credit to $52.504 billion, the largest expansion on record.
Unsurprisingly given the rapid growth seen in June, the level of outstanding credit extended to investors rose to $536.193 billion, also a record-high.
Over the past decade this figure jumped by 135%, or $307.765 billion. From 20 years ago, this extends to an amazing to 1,593%, or $504.52 billion.
Perhaps most importantly, particularly from a regulatory perspective, credit growth to housing investors increased by 10.7% from 12-months earlier, well above the 10% ceiling Australia’s banking regulator – APRA – warned could see additional measures put in place to cool lending to this segment.
Clearly those warnings were not heeded, and APRA, as we’ve seen, decided to act.