What's happening with the CBA (ASX:CBA) share price this week?

Rocketing housing prices may see the banks adjust their mortgage lending settings.

The Commonwealth Bank of Australia (ASX: CBA) share price is up 0.4% in afternoon trade.

The S&P/ASX 200 Index (ASX: XJO), meanwhile, is heading the other way, down 0.4%.

Despite today's gains, the CBA share price remains down 1.6% since last Friday's closing bell. Shares in the big 4 bank closed lower on the first 3 trading days of this week, before posting a 1.2% gain yesterday.

Below we take a look at what's been putting CommBank in the news this past week.

A businesswoman stares in shock at her computer screen.

Image source: Getty Images

CBA share price slides despite disruptive acquisition

The CBA share price closed 0.5% lower on Tuesday, despite the bank reporting it is taking a minority shareholding in Australian property management company :Different. CommBank is pursuing the acquisition with its venture-scaling entity, x15ventures.

:Different has a significant portfolio of owners, tenants and properties under its management. It works to streamline the sector by digitising different parts of the process. CommBank said it will be making :Different available to its customers via its banking app.

Commenting on the move, CommBank's group executive retail banking services, Angus Sullivan said, "To partner with such a disruptive business further differentiates and expands what we are able to deliver for our investor home loan customers."

Sustainable lending practices

On Tuesday, CommBank also reported that it had served as lender and joint sustainability coordinator on a $495 million sustainability-linked loan for the ISPT Retail Australia Property Trust.

The bank said this was another step towards incorporating sustainable finance across all of ISPT's financing requirements.

Charles Davis, managing director, sustainable finance and ESG, at Commonwealth Bank said:

Sustainability-linked loans connect operational targets and financial incentives, galvanising people right across the business around achieving a shared goal. This makes them such an important tool for supporting Australia's transition efforts.

RBA spotlights Aussie housing market

The CBA share price also closed lower on Wednesday, ending the day down 0.7% to $99.64 per share.

That came as the Reserve Bank of Australia (RBA) reported that Australia's overheating housing market may need some reining in.

The RBA's assistant governor of financial systems, Michele Bullock, expressed the central bank's concerns about increasing mortgage debt amid soaring house prices.

Bullock said that rapid price rises from "over-exuberance in the housing market … can increase the likelihood that some new borrowers will over-stretch their financial capacity in order to obtain a new loan".

She added that, "[I]f rapid price rises ultimately prove to be unsustainable they could lead to sharp declines in price and turnover in the future."

CommBank itself has come out in support of the banks needing to potentially adjust their mortgage lending settings.

CBA share price snapshot

The CBA share price is up 21% year-to-date.

By comparison the ASX 200 has gained 10% so far in 2021.

Over the past month, CBA shares are up just over 1%.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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