Home loan approvals sank for the first time in five months in October, although by not as much as analysts had expected.
The number of approvals dipped 0.5 per cent in the month, against analyst expectations of a 1 per cent fall. The result came after a 2 per cent rise in September.
There were 55,571 approvals in October, compared to 55,985 approvals in September, according to seasonally adjusted figures released by the Australian Bureau of Statistics on Tuesday.
The value of total housing finance fell 2 per cent in the month to $32.64 billion.
The value of loans approved for owner-occupied housing lifted 0.4 per cent, while approvals for investment slumped 6.1 per cent.
All major banks have bumped up their interest rates on investment loans in response to requirements to increase their capital reserves, as the Australian Prudential Regulation Authority pushes to restrict growth in investor lending.
Commsec said September's 8.5 per cent fall in investor loan value -- since downwardly revised to 8.2 per cent -- was the biggest drop in the category in seven years.