Borrowers aged 26 to 35 recorded an 18.2% fall in mortgage demand, while 18-to-25-year-olds were down 17.9% – both far steeper than the 5.6% decline among those aged 56 and over. First-home buyer demand fell 17.2%, with Queensland recording the sharpest state-level drop at 20.8%, while Tasmania was comparatively resilient at -9.9%. Refinancing also softened, with switching between lenders down 15.1% and NSW and Victoria posting double-digit declines of 18.3% and 16.6% respectively. Equifax chief solution officer Kevin James said the shift reflected a more cautious mindset taking hold. The Equifax Consumer Market Pulse June data indicates that the proactive risk management we observed among Australian households earlier this year has evolved into a far more conservative, defensive approach to borrowing. He added that under-35s were pulling back hard right across the credit spectrum, with demand from the 26–35 age group effectively hit a wall, dropping -20.5% for new mortgage applications specifically. The retreat isn't just showing up in loan applications — household mood has soured too: the Westpac–Melbourne Institute Consumer Sentiment Index fell 2.9% in June to 80.6, among the weakest readings in its fifty-year history, with the share of consumers nominating real estate as the wisest place for savings dropping to just 4.5% — the lowest level since the survey began in 1974.
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